Bailey Bats Inc. had the following sales and gross profit percentages for the years 20072010. Historically, 55%
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Bailey Bats Inc. had the following sales and gross profit percentages for the years 2007–2010.
Historically, 55% of sales are collected in the year of the sale, 30% in the following year, and 10% in the third year. Assuming collections are as projected, give the journal entries for the years 2007–2010, assuming the cost recovery method. (Ignore provision for bad debts.) Prepare a table comparing the gross profit recognized for 2007–2010 using the full accrual method and the cost recoverymethod.
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Sales Gross Profit Percentage 2007.... 2008 2009- ...-.. 2010. . $47.000 45,000 .58,000 61,000 45% 42 47 49 PA
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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