Cockpit Company sells its goods on installment basis under periodic inventory system. For all installment sales,...

 

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Cockpit Company sells its goods on installment basis under periodic inventory system. For all installment sales, the company adds deferred interest and carrying charges which amounted to 10% of selling price. On January 1, 2021, Cockpit Company's general ledger included the following account balances: Credit Inventory Installment Contract Receivable-2020 Installment Contract Receivable-2019 Deferred Interest and Carrying Charges 2012 Installment Sales 2011 Installment Sales Deferred Gross Profit 2020 Installment Sales Deferred Gross Profit 2019 Installment Sales Debit $ 90,000 445,500 96,525 ? ? 121,500 28,080 During the year 2021, the following transactions occurred: 1. The company made installment sales $520,000 (excluding interest and carrying charges of 10%) and its gross profit was 25%. Installment Contract Receivable 2021 Installment Contract Receivable 2020 Installment Contract Receivable 2019 2. Cash collections including interest and carrying charges amounted to 10% of selling price on installment contract receivable during the year 2021 are: Deferred interest and carrying charges $24,000 28,550 5,600 Cockpit Company sells its goods on installment basis under periodic inventory system. For all installment sales, the company adds deferred interest and carrying charges which amounted to 10% of selling price. On January 1, 2021, Cockpit Company's general ledger included the following account balances: Credit Inventory Installment Contract Receivable-2020 Installment Contract Receivable-2019 Deferred Interest and Carrying Charges 2012 Installment Sales 2011 Installment Sales Deferred Gross Profit 2020 Installment Sales Deferred Gross Profit 2019 Installment Sales Debit $ 90,000 445,500 96,525 ? ? 121,500 28,080 During the year 2021, the following transactions occurred: 1. The company made installment sales $520,000 (excluding interest and carrying charges of 10%) and its gross profit was 25%. Installment Contract Receivable 2021 Installment Contract Receivable 2020 Installment Contract Receivable 2019 2. Cash collections including interest and carrying charges amounted to 10% of selling price on installment contract receivable during the year 2021 are: Deferred interest and carrying charges $24,000 28,550 5,600

Answer rating: 100% (QA)

Heres a summary of Cockpit Companys installment sales transactions for the year 2021 Beginning Balan... View the full answer