Installment-Sales Computations and Entries Presented below is summarized information for Johnston Co., which sells merchandise on the
Question:
Installment-Sales Computations and Entries Presented below is summarized information for Johnston Co., which sells merchandise on the installment basis.
(a) Compute the realized gross profit for each of the years 2010, 2011, and 2012.
(b) Prepare in journal form all entries required in 2012, applying the installment-sales method of accounting. (Ignore interestcharges.)
2010 2011 2012 Sales (on installment plan) Cost of sales Gross profit Collections from customers on: 2010 installment sales 2011 installment sales 2012 installment sales $260,000 $250,000 $280,000 $ 96,200 $ 98,000 $ 95,000 $100,000 100,000 $ 75,000 $ 50,000 120,000 1
Step by Step Answer:
a Rate of gross profit Gross profit realized 38 of 75000 38 of 100000 37 of 100000 38 ...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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