Mandarin Partners appropriately uses the installment- sales method of accounting to recognize income in its financial statements.
Question:
Mandarin Partners appropriately uses the installment- sales method of accounting to recognize income in its financial statements. The following information is available for 2014 and 2015.
Instructions
(a) Compute the amount of realized gross profit recognized in each year.
(b) Prepare all journal entries required in2015.
Transcribed Image Text:
2014 2015 $750,000 Installment sales Cost of installment sales Cash collections on 2014 sales Cash collections on 2015 sales $300,000 255,000 70,000 660,000 201,000 216,000
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a Computation of gross profit recognized 2014 2015 70000 X 15 10500 201000 X 15 3015...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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