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Swift Corp., a capital goods manufacturing business that started on January 4, 2019, and operates on a calendar year basis, uses the instaliment sales method
Swift Corp., a capital goods manufacturing business that started on January 4, 2019, and operates on a calendar year basis, uses the instaliment sales method of profit recognition in accounting for all its sales. The following data were taken from the 2019 and 2020 records 2019 2020 Installment sales $800,000 $1,000,000 Cost of sales $600,000 $700,000 Cash collections on sales of 2019 $500,000 $300,000 Cash collections on sales of 2020 -0 $600,000 Instructions: Using installment sales method a) Compute the amount of realized gross profit to be recognized in each year 06) State where the balance of Unrealized Gross Profit in each year
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