Jensen Corporation sold merchandise costing $800,000 on installment basis for $1,200,000 during 2024. The cash collections were received as follows: 2024: $500,000 . 2025: $400,000 . 2026: $300,000 Calculate the gross profit rate on Jensen's 2024 installment sales.

Principles of Accounting Volume 2
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Chapter7: Budgeting
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Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Jensen Corporation sold merchandise costing $800,000 on
installment basis for $1,200,000 during 2024. The cash collections
were received as follows:
2024: $500,000
. 2025: $400,000
. 2026: $300,000
Calculate the gross profit rate on Jensen's 2024 installment sales.
Transcribed Image Text:Jensen Corporation sold merchandise costing $800,000 on installment basis for $1,200,000 during 2024. The cash collections were received as follows: 2024: $500,000 . 2025: $400,000 . 2026: $300,000 Calculate the gross profit rate on Jensen's 2024 installment sales.
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