Question
Citibank Company which began operations on January 1, 2020, appropriately uses the installment method of accounting to record revenues. The following information is available for
Citibank Company which began operations on January 1, 2020, appropriately uses the installment method of accounting to record revenues. The following information is available for the years ended December 31, 2020, and 2021.
| 2020 | 2021 | |
| Sales | 3,000,000 | 6,000,000 |
| Gross profit realized on sales made in: | ||
| 2020 | 525,000 | 315,000 |
| 2021 | - | 562,500 |
| Gross profit rates | 35% | 37.5% |
- What amount of installment accounts receivable should Citibank report in its December 31, 2021, balance sheet? 1,500,000
- How much are the total collections in 2020?
- How much are the total collections in 2021?
- How much is the deferred gross profit pertaining to 2020 sales will be reported in the balance sheet as of December 31, 2021?
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Accounting For Value
Authors: Stephen Penman, S Penman
1st Edition
0231151187, 9780231151184
