this sale, for the receipt of installment payments at the end of November and December, and for determining the year 2015 profit, assuming that: A. monthly installment payments consist of $600 for the principal and 12% interest on the unpaid balance. B. Monthly installment payments equal to selling @ $600 which includes 12% interest on the amount unpaid liabilities with any excess that reduces the principal amount.
this sale, for the receipt of installment payments at the end of November and December, and for determining the year 2015 profit, assuming that: A. monthly installment payments consist of $600 for the principal and 12% interest on the unpaid balance. B. Monthly installment payments equal to selling @ $600 which includes 12% interest on the amount unpaid liabilities with any excess that reduces the principal amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On October 31, 2015, Zeyn sold the property whose its cost of
goods was 60,000 at a price of $75,000. he received a down
payment of $20,000 remaining monthly installments with the first
installment due on the last day of November. Zeyn decided to report
this profit on sales using the installment method. What journal
entries should be made for this sale, for the receipt of installment
payments at the end of November and December, and for
determining the year 2015 profit, assuming that:
A. monthly installment payments consist of $600 for the principal
and 12% interest on the unpaid balance.
B. Monthly installment payments equal to selling @ $600 which
includes 12% interest on the amount
unpaid liabilities with any excess that reduces the principal amount,
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