[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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
Related questions
Question
![[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%2F2734d59b-9f6e-4a48-9ef4-051928ad5168%2Ffc6663ae-4b5f-45d2-bf07-a89902bfc9e7%2Fg7abppn8_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.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning