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Analysis of Installment-Sales Accounts Samuels Co. appropriately uses the installment-sales method of accounting. On December 31, 2012, the books show balances as follows.
Instructions
(a) Prepare the adjusting entry or entries required on December 31, 2012 to recognize 2012 realized gross profit. (Installment receivables have already been credited for cash receipts during 2012.)
(b) Compute the amount of cash collected in 2012 on accounts receivable each year.
In desperation, you go to your superior Janet Well the chief financial officer of the city, and ask her for guidance. She suggests you not worry about such a petty thing No one reads these reports anyway. What would you do?
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He explains to the board that removing the $80,000 increase in accounts receivable from current assets will increase net cash provided by operations. This approach may help Moss get the loan.
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