Husson g , I n c ., a pp r o p r i a t e l y us e s t h e inst a llm e nt s a l

Question

Hussong, Inc., appropriately uses the installment sales method of revenue recognition. The company sold $1,500,000 on installment accounts during 2014. The cost of items sold was $900,000. At December 31, 2014, Hussong reported a balance of $100,000 in the Deferred Gross Profit account. How much cash did Hussong collect on installment contracts during 2014?

a.

$600,000

b.

$500,000

c.

$250,000

d.

$1,250,000

a.

$600,000

b.

$500,000

c.

$250,000

d.

$1,250,000

Explanation / Answer

Hussong collected on installment contracts= 1500000-900000= $600000

So, answer is a. $600000

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

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