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MantleInc.sellsmerchandiseforcashandalsoontheinstallmentplan.Entriestorecordcostofgoodssoldaremadeattheendofeachyear. Repossessionsofmerchandise(soldin2014)weremadein2015andwererecordedcorrectlyasfollows. DeferredGrossProfit,20146,480 RepossessedMerchandise8,820 LossonRepossession2,700 InstallmentAccountsReceivable,201418,000 Partofthisrepossessedmerchandisewassoldforcashduring2015,andthesalewasrecordedbyadebittoCashandacredittoSalesRevenue. TheinventoryofrepossessedmerchandiseonhandDecember31,2015,is$4,900;ofnewmerchandise,$110,000.TherewasnorepossessedmerchandiseonhandJanuary1,2015. Collectionsonaccountsreceivableduring2015were: InstallmentAccountsReceivable,2014$98,000 InstallmentAccountsReceivable,201578,000 Thecostofthemerchandisesoldundertheinstallmentplanduring2015was$125,050.Therateofgrossprofiton2014andon2015installmentsalescanbecomputedfromtheinformationgiven.

MantleInc.sellsmerchandiseforcashandalsoontheinstallmentplan.Entriestorecordcostofgoodssoldaremadeattheendofeachyear. Repossessionsofmerchandise(soldin2014)weremadein2015andwererecordedcorrectlyasfollows. DeferredGrossProfit,20146,480 RepossessedMerchandise8,820 LossonRepossession2,700 InstallmentAccountsReceivable,201418,000 Partofthisrepossessedmerchandisewassoldforcashduring2015,andthesalewasrecordedbyadebittoCashandacredittoSalesRevenue. TheinventoryofrepossessedmerchandiseonhandDecember31,2015,is$4,900;ofnewmerchandise,$110,000.TherewasnorepossessedmerchandiseonhandJanuary1,2015. Collectionsonaccountsreceivableduring2015were: InstallmentAccountsReceivable,2014$98,000 InstallmentAccountsReceivable,201578,000 Thecostofthemerchandisesoldundertheinstallmentplanduring2015was$125,050.Therateofgrossprofiton2014andon2015installmentsalescanbecomputedfromtheinformationgiven.

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