Compute the realized gross profit for each of the year

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Reference no: EM131154518

Accounting

(Installment-Sales Computations and Entries) Presented below is summarized information for Scribner Co., which sells merchandise on the installment basis.

 

2014

2015

2016

Sales (on installment plan)

$340,000

$300,000

$370,000

Cost of sales

217,600

198,000

240,500

Cost of sales

$122,400

$102,000

$129,500

Collections from customers on:

 

 

 

2014 installment sales

$130,000

$120,000

$ 40,000

2015 installment sales

 

00,000

110,000

2016 installment sales

 

 

140,000

Instructions:

A) Compute the realized gross profit for each of the year 2016. Please check attachment for this answer and make sure correct.

B) Prepare in journal form all entries required in 2016, applying the installment-sales method of accounting. (Ignore interest charges.)

Reference no: EM131154518

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