Maxwell Inc. had installment sales of $2,500,000 and cost of installment sales of $1,750,000 in 2022. A 2022 sale resulted in a default in 2024, at which time the balance of the installment receivable was $85,000. The repossessed merchandise had a fair value of $32,000. Calculate the rate of gross profit on 2022 installment sales.

Maxwell Inc. had installment sales of $2,500,000 and cost of installment sales of $1,750,000 in 2022. A 2022 sale resulted in a default in 2024, at which time the balance of the installment receivable was $85,000. The repossessed merchandise had a fair value of $32,000. Calculate the rate of gross profit on 2022 installment sales.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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