*How much is the ending balance of Installment Receivable as of Dec 31, 2021?*How much is the Installment Sales for the year 2021? FOR ITEMS 44-45An entity which began business on Jan. 1, 2021 uses installment sales method.The following data are available for 2021:Cash Collections during the year250,000.00Deferred Gross Profit, (before adjustment)100,000.00Gross Profit Rate Based on Sales25%

An installment sale is one kind of several methods for revenue recognition under the guidelines…

*How much is the ending balance of Installment Receivable as of Dec 31, 2021? *How much is the Installment Sales for the year 2021?

How much is the ending balance of Installment Receivable as of Dec 31, 2021? How much is the Installment Sales for the year 2021?

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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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

100%

*How much is the ending balance of Installment Receivable as of Dec 31, 2021?

*How much is the Installment Sales for the year 2021?

FOR ITEMS 44-45
An entity which began business on Jan. 1, 2021 uses installment sales method.
The following data are available for 2021:
Cash Collections during the year
250,000.00
Deferred Gross Profit, (before adjustment)
100,000.00
Gross Profit Rate Based on Sales
25%

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