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Company which begins operations on Jan 2, 2015 appropriately uses the installment sales method of accounting. the following information is available for 2015: Installment accounts
Company which begins operations on Jan 2, 2015 appropriately uses the installment sales method of accounting. the following information is available for 2015:
Installment accounts receivable, December 31, 2015 $720,000
Deferred gross profit, december 31, 2015 (before recognition of realized gross profit for 2015) $560,000
Gross profit on sales: 35%
Cash collections in 2015 and the 12/31 balance of deferred gross profit are?
A) 680,000 and 272,000
B) 880,000 and 252,000
C) 720,000 and 252,000
D) 880,000 and 272,000
E) 720,000 and 272,000
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