Company began operations on january 1 2010 and, Ask an Expert

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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

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9418795

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