E18-8 - 50,000 Installment Accounts Receivable2011 120,000...

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P18-8 Page 978 2010 2011 2012 Sales (on installment plan) $ 250,000 $ 260,000 $ 280,000 Cost of sales 155,00 0 163,80 0 182,00 0 Gross Profit $ 95,000 $ 96,200 $ 98,000 Collections from customers on: 2010 installment sales $ 75,000 $ 100,000 $ 50,000 2011 installment sales 100,00 0 120,00 0 2012 installment sales 100,00 0 2010 2011 2012 Rate of gross profit 38% 37% 35% Gross profit realized: 38% of $75,000 $ 28,500 38% of $100,000 $ 38,000 37% of $100,000 37,00 0 38% of $ 50,000 $ 19,000 1
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37% of $120,000 44,40 0 35% of $100,000 35,00 0 $ 28,500 $ 75,000 $ 98,400 Debit Credit (b) Installment Accounts Receivable—2012 280,000 Installment Sales 280,000 Cash 270,000 Installment Accounts Receivable—2010
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Unformatted text preview: 50,000 Installment Accounts Receivable2011 120,000 Installment Accounts Receivable2012 100,000 Cost of Installment Sales 182,000 Inventory 182,000 Installment Sales 280,000 Cost of Installment Sales 182,000 Deferred Gross Profit on Installment Sales 2012 98,000 Deferred Gross Profit on Installment Sales2010 19,000 Deferred Gross Profit on Installment Sales2011 44,400 Deferred Gross Profit on Installment Sales2012 35,000 Realized Gross Profit on Installment Sales 98,400 Realized Gross Profit on Installment Sales 98,400 2 Income Summary 98,400 3...
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E18-8 - 50,000 Installment Accounts Receivable2011 120,000...

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