User Account

All Pages

Determine the total cash collections on installment sales

Assignment Help Accounting Basics
Reference no: EM132873973

Question - Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the installment sales method for revenue recognition. In 2020, Lake began operations and sold jet skis with a total price of $990,000 that cost Lake $495,000. Lake collected $330,000 in 2020, $330,000 in 2021, and $330,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,680,000 that cost Lake $1,008,000. Lake collected $560,000 in 2021, $370,000 in 2022, and $370,000 in 2023 associated with those sales. In 2023, Lake also repossessed $380,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $142,500 at the time they were repossessed.

Required - Determine the total cash collections on installment sales during 2021?

Reference no: EM132873973

Questions Cloud

Develop an evaluation proposal : Develop an evaluation proposal, suitable for submission to a funding organization. You will select an existing program to evaluate or design.
Compute the budgeted manufacturing overhead rate : Consider the following selected cost data for the Bharat Forge Co, for the current year: Compute the budgeted manufacturing overhead rate
Prepare all pension related entries : Long term discount rate applied: 3%; no change from the 2013 assessment. Prepare all pension related entries
How do i generate alternative solutions : How do I generate alternative solutions based on the issues being negotiated?
Determine the total cash collections on installment sales : Those jet skis had a fair value of $142,500 at the time they were repossessed. Determine the total cash collections on installment sales
How much is the grt on march rentals : For the month of April, Ballada Bank had the following income: Interest income with maturity of 5 years P100,000. How much is the GRT on March rentals
How should an employer address inappropriate attire : How should an employer address inappropriate attire?
Critically examine the nature of negotiation : Critically examine the nature of negotiation, bargaining, and advocacy?
What makes a transformational leader most effective : Should transformational leaders come from within an organization or from the outside? Explain. What makes a transformational leader most effective?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd