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James Corporation incurred the following activity during its first two years of operations: Total credit sales Installment sales* Total cost of sales...

gross income
James Corporation incurred the following activity during its first two years of operations: 2012 2013 Total credit sales $750,000 $900,000 Installment sales* 300,000 450,000 Total cost of sales 500,000 540,000 Installment cost of sales** 165,000 270,000 Cash receipts on installment sales: 2012 sales 75,000 105,000 2013 sales -0- 120,000 1. Calculate the balance in Deferred Gross Profit at the end of 2012. 2. Calculate the balance in Deferred Gross Profit at the end of 2013. 3. Calculate gross profit on installment sales recognized in 2012 if the company elects not to use the installment sales method of revenue recognition.
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