Anibonita Company began operations in 2010. It sells goods on installment sales contracts; these transactions are considered to be exceptional, so it uses the installment method to recognize gross profit. The following is a summary of the installment sales, costs of installment sales, operating expenses, and collections for 2010 and 2011:

Required
Using the installment method to recognize gross profits, prepare 2010 and 2011 condensed income statements for the AnibonitaCompany.

Transcribed Image Text:

2010 $80,000 52,000 13,000 2011 $90,000 Installment method sales Costs of installment method sales Operating expenses Cash collections from 59,400 15,000 2010 installment method sales 2011 installment method sales 42,000 21,000 41,000