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.

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Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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Question Posted: Jun 07, 2013 10:29 AM

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Mandarin Partners appropriately uses the installment- sales method of accounting to recognize income in its financial statements.

Question:

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

Step by Step Answer:

a Computation of gross profit recognized 2014 2015 70000 X 15 10500 201000 X 15 3015...View the full answer

Intermediate Accounting

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