Question - Company began operations on January 1, 2010, and appropriately uses the installment method of accounting. The following data are available for 2010:
Installment accounts receivable: 12/31/2010 $600,000
Installment sales for 2010: $1,050,000
Gross Profit on sales 40%
Under the installment method, company's deferred gross profit at December 31, 2010 would be.
a. 360,000
b. 270,000
c. 240,000
d. 180,000