Solution-Compute the amount of realized gross profit to be

Compute the amount of realized gross profit to be recognized

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Reference no: EM131119664

Installment-Sales Method and Cost-Recovery Method) Swift Corp., a capital goods manufacturing business that started on January 4, 2010, and operates on a calendar-year basis, uses the installment sales method of profit recognition in accounting for all its sales. The following data were taken from the 2010 and 2011 records.

The amounts given for cash collections exclude amounts collected for interest charges.

(a) Compute the amount of realized gross profit to be recognized on the 2011 income statement, prepared using the installment-sales method.

(b) State where the balance of Deferred Gross Profit would be reported on the financial statements for 2011.

(c) Compute the amount of realized gross profit to be recognized on the income statement, prepared using the cost-recovery method.
(CIA adapted)

Reference no: EM131119664

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Compute the amount of realized gross profit to be recognized

Reference no: EM131119664

Reference no: EM131119664

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