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

Answer rating: 100% (QA)

a Measurement of productivity Gross Profit 2017 Installment sells 250 000 Less cost of goods sold 15... View the full answer