1.Installment sales
Sawyer Furniture Company concluded its first year of operations inwhich it
made sales of $800,000, all on installment. Collections duringthe year from
down payments and installments totaled $300,000.Purchases for the year
totaled $400,000; the cost of merchandise onhand at the end of the year was
$80,000.
Instructions: Using the installment-sales method, make summary entries to
record:
a.the installment sales and cash collections
b.the cost of installment sales
c.the unrealized gross profit
d.the realized gross profit.
2.Installment sales.
Newton Co. had installment sales of $1,000,000 and cost of installmentsales
of $700,000 in 2010. A 2010 sale resulted in a default in 2012,at which time
the balance of the installment receivable was $30,000.The repossessed
merchandise had a fair value of $15,000.
Instructions
(a)Calculate the rate of gross profit on 2010 installment sales.
(b)Make the entry to record the repossession.
另外,可以請問有誰知道這是出自哪一本的習題嗎？