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ABC Co.’s records show the following information: 20x1 20x2 Deferred gross profit (adjusted ending balances): from 20x1 sale 240,000 160,000 from 20x2 sale 324,000 Gross profit rates based on sales 40% 45% Cash collections from: 20x1 sales 400,000 200,000 20x2 sales 480,000 How much is the total installment receivable on December 31, 20x2?

ABC Co.’s records show the following information: 20x1 20x2 Deferred gross profit (adjusted ending balances): from 20x1 sale 240,000 160,000 from 20x2 sale 324,000 Gross profit rates based on sales 40% 45% Cash collections from: 20x1 sales 400,000 200,000 20x2 sales 480,000 How much is the total installment receivable on December 31, 20x2?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. ABC Co.’s records show the following information:


                                                                                20x1        20x2
Deferred gross profit (adjusted ending balances):
from 20x1 sale                                                        240,000  160,000
from 20x2 sale                                                                       324,000
Gross profit rates based on sales                               40%        45%
Cash collections from:
20x1 sales                                                               400,000  200,000
20x2 sales                                                                              480,000


How much is the total installment receivable on December 31, 20x2?

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