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MAGIGING CPA AKO Co. uses the installment method. MAGIGING CPA AKO Co.'s records show the following balances: Installment Receivables - Jan. 1, 2020                   0 Installment Sales                                                   1,000,000 Cost of Sales                                                          800,000 Installment Receivables - Dec. 31, 2020                600,000 How much is the realized gross profit for the year 2020? How much is the deferred gross profit on December 31,2020?

MAGIGING CPA AKO Co. uses the installment method. MAGIGING CPA AKO Co.'s records show the following balances: Installment Receivables - Jan. 1, 2020                   0 Installment Sales                                                   1,000,000 Cost of Sales                                                          800,000 Installment Receivables - Dec. 31, 2020                600,000 How much is the realized gross profit for the year 2020? How much is the deferred gross profit on December 31,2020?

FINANCIAL ACCOUNTING
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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MAGIGING CPA AKO Co. uses the installment method. MAGIGING CPA AKO Co.'s records show the following balances:

  • Installment Receivables - Jan. 1, 2020                   0
  • Installment Sales                                                   1,000,000
  • Cost of Sales                                                          800,000
  • Installment Receivables - Dec. 31, 2020                600,000
  1. How much is the realized gross profit for the year 2020?
  2. How much is the deferred gross profit on December 31,2020?
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