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E18-23 (Installment-Sales Method and Cost-Recovery Method) Swift Corp., a capital goods manufacturing business that started on January 4, 2012, and operates on a calendar-year basis,
E18-23 (Installment-Sales Method and Cost-Recovery Method) Swift Corp., a capital goods manufacturing business that started on January 4, 2012, and operates on a calendar-year basis, uses the installmentsales method of profit recognition in accounting for all its sales. The following data were taken from the 2012 and 2013 records.
| 2012 | 2013 | |||||
| Installment sales | $565,000 | $613,000 | ||||
| Gross profit as a percent of costs | 25 | % | 28 | % | ||
| Cash collections on sales of 2012 | $106,000 | $159,000 | ||||
| Cash collections on sales of 2013 | ||||||
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