Long Corp appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2017 and 2018. 20172018Installment sales$799,000 $999,000 Cost of installment sales479,000 649,000 Cash collections on sales of 2021299,000 499,000 Cash collections on sales of 2022-0- 399,000 Calculate the amount of realized gross profit recognized for each year. 20172018

Answer:- Gross profit:- Gross profit is computed after deducting the cost of goods sold from the…

Answered: Long Corp appropriately uses the…

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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Long Corp appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2017 and 2018.

	2017	2018
Installment sales	$799,000		$999,000
Cost of installment sales	479,000		649,000
Cash collections on sales of 2021	299,000		499,000
Cash collections on sales of 2022	-0-		399,000

Calculate the amount of realized gross profit recognized for each year.

2017	2018

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