exercise ch18 solution

exercise ch18 solution - 240,000 Cost of Installment Sales.

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Installment-sale exercise: data is shown on textbook P925-927. Entries in 2009: Installment Accounts Receivable, 2009. ...................................... 240,000 Installment Sales. ............................................................................. 240,000 (To record sales made on installment in 2009) Cash . .............................................................................................. 245,000 Installment Accounts Receivable, 2007. ......................................... 40,000 Installment Accounts Receivable, 2008. ......................................... 125,000 Installment Accounts Receivable, 2009. ......................................... 80,000 (To record cash collected on installment in 2009) Cost of Installment Sales. ............................................................. 168,000 Inventory (or Purchases). ................................................................ 168,000 (To record cost of goods sold on installment in 2009) Installment Sales. ..............................................................................
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Unformatted text preview: 240,000 Cost of Installment Sales. .................................................................... 168,000 Deferred Gross Profit, 2009. ............................................................... 72,000 (To close installment sales and cost of installment sales for the year) Deferred Gross Profit, 2007. .............................................................. 10,000 Deferred Gross Profit, 2008. .............................................................. 30,000 Deferred Gross Profit, 2009. .............................................................. 24,000 Realized Gross Profit on Installment Sales. ...................................... 64,000 (To remove from deferred gross profit the profit realized through cash collection) Realized Gross Profit on Installment Sales. ..................................... 64,000 Income Summary. ............................................................................... 64,000...
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