Question
Company Inc sells gadgets on an installment basis: 2019 2020 2021 installment sales 312,000 336,000 384,000 cost of installment sales 190,320 194,880 230,400 From sales
Company Inc sells gadgets on an installment basis:
| 2019 | 2020 | 2021 | |
| installment sales | 312,000 | 336,000 | 384,000 |
| cost of installment sales | 190,320 | 194,880 | 230,400 |
From sales made during the year
| 2019 | 2020 | 2021 | |
| installment accounts receivable, 1/1/21 | 19,200 | 240,000 | 0 |
| installment accounts receivable, 12/31/21 | 0 | 48,000 | 256,000 |
Repossessed on defaulted accounts were made during 2021, as follows:
From sales made during the year
| 2019 | 2020 | 2021 | |
| accounts balance | 0 | 8,000 | 4,000 |
| net resale of repossessed inventory | 3,600 | 2,800 |
QUESTIONS:
1.total realized gross profit from installment sales during 2021
2.total deferred gross profit from installments sales as of December 31, 2020?
3. net gain/loss on repossession on defaulted sales of 2020 and 2021 was:
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Analytical Corporate Finance
Authors: Angelo Corelli
1st Edition
3319395483, 9783319395487
