[4 points] Omega Corporation had installment sales of $2,000,000 and cost of installment sales of $1,400,000 in 2019. A 2019 sale resulted in a default in 2021, at which time the balance of the installment receivable was $60,000. The repossessed merchandise had a fair value of $30,000. a. Calculate the rate of gross profit on 2019 installment sales. b. Make the entry to record the repossession.
[4 points] Omega Corporation had installment sales of $2,000,000 and cost of installment sales of $1,400,000 in 2019. A 2019 sale resulted in a default in 2021, at which time the balance of the installment receivable was $60,000. The repossessed merchandise had a fair value of $30,000. a. Calculate the rate of gross profit on 2019 installment sales. b. Make the entry to record the repossession.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[4 points]
Omega Corporation had installment sales of $2,000,000
and cost of installment sales of $1,400,000 in 2019. A
2019 sale resulted in a default in 2021, at which time
the balance of the installment receivable was $60,000.
The repossessed merchandise had a fair value of
$30,000.
a. Calculate the rate of gross profit on 2019 installment
sales.
b. Make the entry to record the repossession.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F474c7803-a882-4aba-a706-f914637b9516%2F9c18d6d7-10e9-4eef-996a-1b0e3e4f6802%2Fr4j87js_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[4 points]
Omega Corporation had installment sales of $2,000,000
and cost of installment sales of $1,400,000 in 2019. A
2019 sale resulted in a default in 2021, at which time
the balance of the installment receivable was $60,000.
The repossessed merchandise had a fair value of
$30,000.
a. Calculate the rate of gross profit on 2019 installment
sales.
b. Make the entry to record the repossession.
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