Question: The Smookler Company uses the installment method for certain sales and experiences a constant gross profit rate of 20%. The following are the account balances

The Smookler Company uses the installment method for certain sales and experiences a constant gross profit rate of 20%. The following are the account balances at December 31, 2007 and 2008:

Required
Prepare the journal entries for2008.

Installment Receivables $50,000 80,000 Deferred Gross Profit $10,000 16,000 Installment Method Sales $100,000 130,000 2007 2008

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Accounts Receivable 130000 Sales 130000 Cost of Goods Sold 130000 x 1 020 104000 Inventory ... View full answer

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