The balance in the deferred gross profit account at, Ask an Expert

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Karr Co. began operations on January 1, 1988, and appropriately uses the installment method of accounting. The following information pertains to Karr's operations for 1988:

Installment Sales $800,000
Cost of Installment Sales 480,000
General and Admin Expenses 80,000
Collections on Installment Sales 300,000

The balance in the deferred gross profit account at December 31, 1988 should be:

a. $120,000

b. $150,000

c. $200,000

d. $320,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M955227

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