Question
Modi & Co uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2016 and 2017.
Modi & Co uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2016 and 2017.
|
| 2016 | 2017 |
| Installment sales | AED 300,000 | |
| Cost of installment sales (inventory cost) | 180,000 |
|
| Cash collections on 2016 sales | 90,000 | 210,000 |
Required:
- Compute the amount of gross profit realized in 2016 and 2017 assuming Modi & Co
uses the installment-sales method.
- Prepare in journal form all entries required in 2016.
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Employment, Hours, And Earnings 2010 States And Areas
Authors: Sarah E. Baltic
5th Edition
1598884190, 9781598884197
