Accounting Question:

Oliver Furnishings frequently has sales involving "no down payment and no payments for three months." Three months The company has a December 31 year-end. During the year, the company made the following sales on installment plans. after the purchase date, customers make four equal monthly payments (i.e., they make equal payments 3, 4, 5, and 6 Oliver makes a 45% gross margin on these sales. months after purchase). Each payment is one-quarter of the purchase price. (Click the icon to view the sales data.) Required Requirement a. using the installment sales method, determine the balance of Installment accounts receivable al December 31. Use the table below to calculate the balance of installment accounts receivable at the end of each month. Then calculate the total accounts receivable balance at December 31. (Enter a "0" for any zero balances.) Installment No. of payments Total number Installment accounts Month sales o/s at year-end of payments receivable at 12/31 Sales Data - X January February March Month Sale price Month Sale price Month Sale price April January $ 65,000 May $ 80,000 September $ 104,000 May February 63,000 June 104,000 October 80,000 June March 80,000 July 84,000 November 60,000 July April 104,000 August 74,000 December 77,000 August Total $ 975,000 September October November X Print Done December Totals Enter any number in the edit fields and then continue to the next question. ? Save for LaterOliver Furnishings frequently has sales involving 'no down payment and no paymenB for three months." Three months The company has a December 31 year~end. During the year, the company made the following sales on installment plans. after the purchase date, customers make four equal monthly payments (i.e., they make equal payments 3, 4, 5, and 6 Oliver makes a 45% gross margin on these sales. months after purchase). Each payment is onequarter of the purchase price. a (Click the icon to view the sales data.) Required 0 Sales Data 65,000 May 80,000 September 104,000 63,000 June 104,000 October 80,000 80,000 July 84,000 November 60.000 104,000 August 74,000 December 77,000 975,000 Imi- Requirement b. Using the installment sales method, determine the amount - d : rred gross p - as at December 31. (Round to the nearest whole dollar.) The deferred gross prot at December 31 is $ Requirement 1:. Using the installment sales method, determine the sales revenue to recognize in the current year for installment sales made during the year. Sales revenue for installment sales made in current year is $ Enter any number in the edit fields and then continue to the next question. Save for Later