Selected transactions of TV Land Company are presented below. 1. A television set costing $540 is sold to Jack Matre on November 1, 2012, for $900. Matre makes a down payment of $300 and agrees to pay $30 on the first of each month for 20 months thereafter. 2. Matre pays the $30 installment due December 1, 2012. 3. On December 31, 2012, the appropriate entries are made to record profit realized on the installment sales. How much is the realized gross profit on December 31, 2012?
Selected transactions of TV Land Company are presented below. 1. A television set costing $540 is sold to Jack Matre on November 1, 2012, for $900. Matre makes a down payment of $300 and agrees to pay $30 on the first of each month for 20 months thereafter. 2. Matre pays the $30 installment due December 1, 2012. 3. On December 31, 2012, the appropriate entries are made to record profit realized on the installment sales. How much is the realized gross profit on December 31, 2012?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Selected transactions of TV Land Company are presented below.
1. A television set costing $540 is sold to Jack Matre on November 1, 2012, for $900. Matre makes a down payment of $300 and agrees to pay $30 on the first of each month for 20 months thereafter.
2. Matre pays the $30 installment due December 1, 2012.
3. On December 31, 2012, the appropriate entries are made to record profit realized on the installment sales.
How much is the realized gross profit on December 31, 2012?
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