Question: Kavya Co. had installment sales of $1,000,000 and cost of installment sales of $700,000 in 2004. A 2004 sale resulted in a default in 2006, at which time the balance of the installment receivable was $30,000. The repossessed merchandise had a fair value of $15,000. ➤ Calculate the rate of gross profit on 2004 installment sales.
Question: Kavya Co. had installment sales of $1,000,000 and cost of installment sales of $700,000 in 2004. A 2004 sale resulted in a default in 2006, at which time the balance of the installment receivable was $30,000. The repossessed merchandise had a fair value of $15,000. ➤ Calculate the rate of gross profit on 2004 installment sales.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 1BCRQ
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Installment sales of 1000,000
Transcribed Image Text:Question:
Kavya Co. had installment sales of $1,000,000 and cost of installment sales of
$700,000 in 2004. A 2004 sale resulted in a default in 2006, at which time the
balance of the installment receivable was $30,000. The repossessed merchandise
had a fair value of $15,000.
➤ Calculate the rate of gross profit on 2004 installment sales.
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