From the data above which cover the 3 years since abc, Ask an Expert

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( installment sales income statements) ABC stores sells merchandise on open as well as on installment terms.
2010 2011 2012

Sales on accounts 3850001 426000 525000
Installment sales 320000 275000 380000
Collection on installment sales
Made in 2010 100000 90000 40000
Made in 2011 110000 140000
Made in 2012 125000
Cost of sales
Sold on accounts 270000 277000 341000
Sold on installment 214400 176000 228000
Selling expenses
77000 87000 92000
Administrative exp. 50000 51000 52000

From the data above, which cover the 3 years since ABC stores commenced operations, determine the net income for each year, applying the installment sales method of accounting(ignore interest charges).

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Category:- Accounting Basics
Reference No.:- M979707

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