Question
X Corporation appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2020 and 2021.
X Corporation appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2020 and 2021.
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| 2020 | 2021 | ||
| Installment sales | $800,000 |
| $1,000,000 |
|
| Cost of installment sales | 480,000 |
| 650,000 |
|
| Cash collections on sales of 2020 | 300,000 |
| 500,000 |
|
| Cash collections on sales of 2021 | -0- |
| 400,000 |
|
| Compute the amount of realized gross profit recognized in each year. |
|
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| 2020 | 2021 |
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Fundamental Financial Accounting Concepts Paperback By Edmonds Thomas P O
Authors: Thomas P. Edmonds, Christopher Edmonds, Mark A. Edmonds, Jennifer Edmonds, Philip R. Olds
11th Edition
9781264266234, 1264266235
