Harber co. uses the installment sales method. when an, Ask an Expert

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Harber Co. uses the installment sales method. When an account had a balance of $2,800, no further collections could be made and the dining room set was repossessed. At that time, it was estimated that the dining room set could be sold for $800 as repossessed, or for $1,000 if the company spent $100 reconditioning it. The gross profit rate on this sale was 70%. The gain or loss on repossession was a:

A) $1,960 loss.

B) $2,000 loss.

C) $200 gain.

D) $60 gain.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M959454

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