Installment accounts receivable, 1/1/09755,000Installment accounts receivable, 12/31/09840,000Unrealized gross profit, 1/1/09339,750Installment sales950,000 The Central Plains Subdivision sellsresidential subdivision lots in installment. Thefollowing information was taken from theaccounting records of Central PlainsSubdivision as at December 31, 2009:How much is the realized gross profit in2009?

Installment Sales: Installation contracts are a kind of purchase agreement in which the customer…

Answered: Installment accounts receivable, 1/1/09…

Installment accounts receivable, 1/1/09 755,000 Installment accounts receivable, 12/31/09 840,000 Unrealized gross profit, 1/1/09 339,750 Installment sales 950,000

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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Question

Installment accounts receivable, 1/1/09
755,000
Installment accounts receivable, 12/31/09
840,000
Unrealized gross profit, 1/1/09
339,750
Installment sales
950,000

The Central Plains Subdivision sells
residential subdivision lots in installment. The
following information was taken from the
accounting records of Central Plains
Subdivision as at December 31, 2009:
How much is the realized gross profit in
2009?

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