Demolish Co. uses the “cost recovery method” (traditional accounting based on old US GAAP). The records of Demolish Co. show the following information: 20x1 20x2 sales 10,000 15,000 cost of sales 8,000 9,000 cash collection: -from 20x1 sales 7,000 3,000 -from 20x2 sales 12,000 How much is the gross profit recognized by Demolish in 20x2
Demolish Co. uses the “cost recovery method” (traditional accounting based on old US GAAP). The records of Demolish Co. show the following information: 20x1 20x2 sales 10,000 15,000 cost of sales 8,000 9,000 cash collection: -from 20x1 sales 7,000 3,000 -from 20x2 sales 12,000 How much is the gross profit recognized by Demolish in 20x2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Demolish Co. uses the “cost recovery method” (traditional accounting based on old US GAAP). The records of Demolish Co. show the following information:
20x1 | 20x2 | |
sales | 10,000 | 15,000 |
cost of sales | 8,000 | 9,000 |
cash collection: | ||
-from 20x1 sales | 7,000 | 3,000 |
-from 20x2 sales | 12,000 |
How much is the gross profit recognized by Demolish in 20x2?
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