Solution-How much deferred gross profit exists

How much deferred gross profit exists

Assignment Help Accounting Basics

Reference no: EM132672628

Problem - Paula has sales that qualify to be reported on the installment basis. In year 2, installment sales were $40,000 with a cost of $30,000. In year 3, installment sales were $50,000 with a cost of $25,000. Collections in year 2 were in the amount of $30,000. Collections in year 3 were $10,000 on the year 2 sales and $30,000 on the year 3 sales. How much deferred gross profit exists as of the end of year 2?

a. $2,500

b. $5,000

c. $7,500

d. $10,000

Reference no: EM132672628

Questions Cloud

Power for a law system to fulfill its primary purposes : What is one necessary power for a law system to fulfill its primary purposes? What is one necessary power for an administrative system to fulfill its primary pu

Do countries and companies need explicit strategies : Do you feel that countries and companies need explicit strategies for technology development, given the tremendous amount of largely spontaneous creativity.

What adjustment to income tax expense to recognise : The company rate of income tax was reduced from 40% to 35%. The adjustment to income tax expense to recognise the impact of the tax rate change is

Suicide And Elder Abuse : The Center for Disease Control (CDC) identified suicide as a common death investigation within the United States.

How much deferred gross profit exists : Paula has sales that qualify to be reported on the installment basis. How much deferred gross profit exists as of the end of year 2

What the book value of an asset is equal to the : What the book value of an asset is equal to the? Equipment that cost $144,000 and on which $120,000, Which The entry to record this event would include a?

Broader discourse of conventional language in global politic : Cohn asserts that "professional language sets the terms for public debate". What are the implications of theories, concepts (peace) and definitions (populism)

Sexual Assault Evidence and Forms of Abuse among Children : It is common knowledge that rape and sexual assault investigations provide evidence such as stained or torn clothing, scratches,

Theorizing about international politics : Why does the following alternatives to theorizing about international politics - green offer the best account of global politics?

User Account

All Pages

How much deferred gross profit exists

Reference no: EM132672628

Reference no: EM132672628

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT