* Question 6 Newton Co. had installment sales of $1,080,000 and cost of installm

Question

* Question 6 Newton Co. had installment sales of $1,080,000 and cost of installment sales of $799,200 in 2014. A 2014 sale resulted in a default in 2016, at which time the balance of the installment receivable was $35,000. The repossessed merchandise had a fair value of $20,000. Calculate the rate of gross profit on 2014 installment sales. Rate of gross profit Make the entry to record the repossession. (Credit account titles are automatically indented when amount is entered. Do not indent manually. 0 Account Titles and Explanation Debit Credit Question Attempts: 0 of 3 used Copyright © 2000-2015 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 11/10/2015

Explanation / Answer

Calculation of gross profit Particular amount particular amount to cost $799,200 By sale 1080000 to gross profit $280,800 Gross profit % = 280800/1080000*100=26% Journal Entry Account receivable 1080000                      to sales 1080000 (Being sales made)

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.