Under the installment sales method what would be rossons, Ask an Expert

Accounting

Rosson Corporation, which began business on January 1, 2008. Appropriately uses the installment sales method of accounting for income tax reporting purposes. The following data is available for 2008:

Installment accounts receivable, 12/31/2008: $200,000
Installment Sales for 2008: $350,000
Gross Profit on Sales: 40%

Under the installment sales method, what would be Rosson's deferred gross profit at December 31, 2008?

a. $120,000

b. $90,000

c. $80,000

d. $60,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9407213

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