The Smookler Company uses the installment method for certain sales and experiences a constant gross profit rate

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The Smookler Company uses the installment method for certain sales and experiences a constant gross profit rate of 20%. The following are the account balances at December 31, 2007 and 2008:

Required
Prepare the journal entries for2008.

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Question Posted: Mar 10, 2012 06:41 AM

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The Smookler Company uses the installment method for certain sales and experiences a constant gross profit rate

Question:

Installment Receivables $50,000 80,000 Deferred Gross Profit $10,000 16,000 Installment Method Sales $100,000 130,000 2007 2008

Step by Step Answer:

Accounts Receivable 130000 Sales 130000 Cost of Goods Sold 130000 x 1 020 104000 Inventory ...View the full answer

Intermediate Accounting

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