The Willows Company accounts for its sales on installment basis. Provided below are the beginning and ending balances: Jan. 1, 2021 Dec. 31, 2021 Installment accounts receivable – 2019 140,000 40,000 Installment accounts receivable – 2020 240,000 80,000 Installment accounts receivable – 2021 200,000 Deferred gross profit – 2019 42,000 Deferred gross profit – 2020 60,000 ? Deferred gross profit – 2021 ? Installment sales – 2021 900,000 Cost of installment sales – 2021 652,500 Compute for the following: Installment Sales Transaction on Year 2019 2020 2021
The Willows Company accounts for its sales on installment basis. Provided below are the beginning and ending balances: Jan. 1, 2021 Dec. 31, 2021 Installment accounts receivable – 2019 140,000 40,000 Installment accounts receivable – 2020 240,000 80,000 Installment accounts receivable – 2021 200,000 Deferred gross profit – 2019 42,000 Deferred gross profit – 2020 60,000 ? Deferred gross profit – 2021 ? Installment sales – 2021 900,000 Cost of installment sales – 2021 652,500 Compute for the following: Installment Sales Transaction on Year 2019 2020 2021
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:The Willows Company accounts for its sales on installment basis. Provided below are the beginning and ending balances:
Jan. 1, 2021
Dec. 31, 2021
Installment accounts receivable – 2019
140,000
40,000
Installment accounts receivable – 2020
240,000
80,000
Installment accounts receivable – 2021
200,000
42,000
Deferred gross profit – 2019
Deferred gross profit – 2020
Deferred gross profit – 2021
?
60,000
?
?
Installment sales – 2021
900,000
Cost of installment sales – 2021
652,500
Compute for the following:
Installment Sales Transaction on Year
2019
2020
2021
Gross profit rate
Realized gross profit on 2021
Deferred gross profit – Dec. 31, 2021
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