(Installment-Sales Computations and Entries) Presented below is summarized infor
ID: 2433826 • Letter: #
Question
(Installment-Sales Computations and Entries) Presented below is summarized information Johnston Co., which sells merchandise on the installment basis. 2010 2011 2012 Sales (on installment plan) $250,000 $260,000 $280,000 Cost of sales 155,000 183,800 182,000 Gross profit $95,000 $96,000 $90,000 Collections from customers on: 2010 installment sales $75,000 $100,000 $50,000 2011 installment sales 100,000 120,000 2012 installment sales 100, 000 Instructions Compute the realized gross profit for each of the years 2010, 2011, and 2012.Explanation / Answer
2010
2011
2012
$250,000
$260,000
$280,000
$155,000
$163,800
$182,000
$95,000
$96,200
$98,000
38%
$37%
35%
$28,500
$38,000
$19,000
0
$37,000
$44,400
0
$35,000
$28,500
$75,000
$98,400
2010
2011
2012
Sales (On Installment plan)$250,000
$260,000
$280,000
Cost of Sales$155,000
$163,800
$182,000
Gross Profit$95,000
$96,200
$98,000
Gross Profit Rate38%
$37%
35%
Realized Gross Profit From 2010 Sales Realized in$28,500
$38,000
$19,000
From 2011 Sales Realized in0
$37,000
$44,400
From 2012 Sales Realized in0
$35,000
Total Realized Gross Profit$28,500
$75,000
$98,400
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