Analysis of Installment-Sales Accounts Samuels Co. appropriately uses the installment-sales method of accounting. On December 31, 2012,

Question:

Analysis of Installment-Sales Accounts Samuels Co. appropriately uses the installment-sales method of accounting. On December 31, 2012, the books show balances as follows.

Instructions

(a) Prepare the adjusting entry or entries required on December 31, 2012 to recognize 2012 realized gross profit. (Installment receivables have already been credited for cash receipts during 2012.)

(b) Compute the amount of cash collected in 2012 on accounts receivable each year.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...