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Newton Co. had installment sales of $1,000,000 and cost of installment sales of $650,000 in 2012. A 2012 sale resulted in a default in 2014,
Newton Co. had installment sales of $1,000,000 and cost of installment sales of $650,000 in 2012. A 2012 sale resulted in a default in 2014, at which time the balance of the installment receivable was $40,000. The repossessed merchandise had a fair value of $21,000. Instructions (a) Calculate the rate of gross profit on 2012 installment sales. (b) Make the entry to record the repossession
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