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Compute the amount of realized gross profit

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Question - Installment-Sales Method and Cost-Recovery Method - Swift Corp., a capital goods manufacturing business that started on January 4, 2019, and operates on a calendar-year basis, uses the installment sales method of profit recognition in accounting for all its sales. The following data were taken from the 2019 and 2020 records. 2019 2020 Installment sales $480,000 $620,000 Gross profit as a percent of costs 25% 28% Cash collections on sales of 2010 $130,000 $240,000 Cash collections on sales of 2011 -0- $160,000 The amounts given for cash collections exclude amounts collected for interest charges. Compute the amount of realized gross profit to be recognized on the income statement, prepared using the cost-recovery method.

Reference no: EM133122750

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