Question
Swift company uses installment sales method. Below is a summary of its sales, cost of goods sold, and gross profit for three years. description 2017
Swift company uses installment sales method. Below is a summary of its sales, cost of goods sold, and gross profit for three years. description 2017 2018 2019 installment sales $250,000 $260,000 $280,000 cost of goods sold 155,000 163,800 182,000 gross profit 95,000 96,200 98,000 swift company’s collections from customers are duplicated below: description 2017 2018 2019 2017 installment sales $75,000 $100,000 $50,000 2018 installment sales 100,000 120,000 2019 installment sales 100,000 required assume swift uses installment sales method of accounting
Requirements:
a. Compute the gross profit for 2017, 2018, and 2019.
b. Prepare journal entries for 2019
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
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