Accounting
(Installment-Sales Computations and Entries) Presented below is summarized information for Scribner Co., which sells merchandise on the installment basis.
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2014
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2015
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2016
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Sales (on installment plan)
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$340,000
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$300,000
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$370,000
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Cost of sales
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217,600
|
198,000
|
240,500
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|
Cost of sales
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$122,400
|
$102,000
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$129,500
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Collections from customers on:
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|
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2014 installment sales
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$130,000
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$120,000
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$ 40,000
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2015 installment sales
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00,000
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110,000
|
|
2016 installment sales
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|
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140,000
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Instructions:
A) Compute the realized gross profit for each of the year 2016. Please check attachment for this answer and make sure correct.
B) Prepare in journal form all entries required in 2016, applying the installment-sales method of accounting. (Ignore interest charges.)