Question: Lead Distributing, which began operating on January 1, appropriately uses the installment method of accounting. The following information pertains to Lead's operations for the first

Lead Distributing, which began operating on January 1, appropriately uses the installment method of accounting. The following information pertains to Lead's operations for the first year:

Installment sales Cost of installment sales General and administrative expenses Collections on

The balance in the deferred gross profit account at December 31 should be:

a. P320,000 b. P240,000 c. P400,000 d. P200,000

Installment sales Cost of installment sales General and administrative expenses Collections on installment sales 1,000,000 600,000 100,000 200,000

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