Oro Company began operations on January 1, 2021 and appropriately uses the installment sales method of accounting. The followin data are available for 2020 and 2021: 2020 2021 Installment sales 1,500,000 1,800,000 Gross profit on sales 30% 40% Cash collections from: 2020 sales 500,000 600,000 2021 sales 700,000 The realized gross profit for 2021 is: 720,000 520,000 460,000 280,000

Oro Company began operations on January 1, 2021 and appropriately uses the installment sales method of accounting. The followin data are available for 2020 and 2021: 2020 2021 Installment sales 1,500,000 1,800,000 Gross profit on sales 30% 40% Cash collections from: 2020 sales 500,000 600,000 2021 sales 700,000 The realized gross profit for 2021 is: 720,000 520,000 460,000 280,000

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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