• Oliver Co. uses the installment-sales method. When an account had a balance of $8,400, no further collections could be made and the dining room set was repossessed. At that time, it was estimated that the dining room set could be sold for Br2,400 as repossessed, or for Br3,000 if the company spent Br300 reconditioning it. The gross profit rate on this sale was 70%. The gain or loss on repossession was a:

Br5,880 loss.               B. Br6,000 loss.                      C. Br600 gain.             D.Br180 gain.

Answer rating: 100% (QA)

Answer is d Bt 180 gain Explanation JOURN... View the full answer