Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $29,000 was sold for $56,750 in 2012. Collections on this sale were $21,800 in 2012, $15,000 in 2013, and $19,950 in 2014.

In its 2013 year-end balance sheet, Reliable would report installment receivables (net) of:

$ 0.

$15,000.

$19,950.

$8,500.

22. Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $29,000 was sold for $56,750 in 2012. Collections on this sale were $21,800 in 2012, $15,000 in 2013, and $19,950 in 2014. In its 2013 year-end balance sheet, Reliable would report installment receivables (net) of: O $0. $15.000 $19.950 $8,500