Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales aren't reasonably assured and

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Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales aren't reasonably assured and bad debt losses can't be reasonably predicted. It's unlikely that repossessed merchandise will be in salable condition. Therefore, Reliable uses the cost recovery method. Merchandise costing $30,000 was sold for $55,000 in 2010. Collections on this sale were $20,000 in 2010, $15,000 in 2011, and $20,000 in 2012.In its 2010 year-end balance sheet, Reliable would report installment receivables (net) of
A. $20,000.
B. 25,909.
C. $35,000.
D. $10,000.

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Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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