User Account

All Pages

Company instead uses the cost recovery method

Assignment Help Financial Accounting
Reference no: EM13883126

1.Wolf Computer Company began operations in 2013. The company allows customers to pay in installments for many of its products. Installment sales for 2013 were $1,000,000. If revenue is recognized at the point of delivery, $600,000 in gross profit would be recognized in 2013. If the company instead uses the cost recovery method, $100,000 in gross profit would be recognized in 2013.

Required:
1. What was the amount of cash collected on installment sales in 2013?
2. What amount of gross profit would be recognized if the company uses the installment sales method?

Reference no: EM13883126

Questions Cloud

The company uses the perpetual inventory system : 3. Repeat requirement 1 applying the cost recovery method.
Which liabilities require collateral : Banks must pledge collateral against four different types of liabilities. Which liabilities require collateral, what type of collateral is required, and what impact do the pledging requirements have on a bank's asset liquidity?
What are the implications for the future : What are the implications for the future
The bank ships excess vault cash to the federal reserve : Explain how each of the following will affect a bank's deposit balances at the Federal Reserve: a. The bank ships excess vault cash to the Federal Reserve. b. The bank buys U. S. government securities in the open market. c. The bank realizes a surplu..
Company instead uses the cost recovery method : If the company instead uses the cost recovery method, $100,000 in gross profit would be recognized in 2013.
The installment sales method for profit recognition : 1.On April 1, 2013, the Apex Corporation sold a parcel of underdeveloped land to the Applegate Construction Company for $2,400,000.
What do the terms core deposits and volatile : What do the terms core deposits and volatile, or noncore, deposits mean? Explain how a bank might estimate the magnitude of each.
Costs incurred and estimated costs to complete : Costs incurred and estimated costs to complete at year end for the life of the contract are as follows ($ in millions):
Difference between a correspondent and bankers bank : What is the difference between a correspondent, respondent, and banker's bank?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd