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E18-20B (Analysis of Installment-Sales Accounts)Republic Distributors. appropriately uses the installment-sales method of accounting. On December 31, 2014, the books show balances as follows. Installment Receivables Deferred Gross Profit Gross Profit on S

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E18-20B (Analysis of Installment-Sales Accounts)Republic Distributors. appropriately uses the installment-sales method of accounting. On December 31, 2014, the books show balances as follows.;Installment Receivables Deferred Gross Profit Gross Profit on Sales;2012 $ 85,000 $56,800 26%;2013 140,000 80,200 22%;2014 60,000 45,000 25%;Instructions;(a) Prepare the adjusting entry or entries required on December 31, 2014, to recognize 2014 realized gross profit. (Installment receivables have already been credited for cash receipts during 2014.);(b) Compute the amount of cash collected in 2014 on accounts receivable each year.

 

Paper#75347 | Written in 18-Jul-2015

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