Sarah Incorporated uses the installment method. Date relating to the three years of operations were as follows:
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Sarah Incorporated uses the installment method. Date relating to the three years of operations were as follows:
2019 | 2020 | 2021 | |
cost of installment sales | 5,450,500 | 6,500.450 | 7,225,560 |
gross profit rate | 20% based on sale | 25% based on sale | 30% based on cost |
Deferred gross profit balance after adjusting entries: | |||
2019 sales | 1,350,800 | 975,000 | 435,600 |
2020 sales | -- | 2,000,750 | 1,875,455 |
-- | 2,201,658 |
How much was the total collection in 2021?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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