Find balance of deferred gross profit account at december

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The Pulahan, Inc. began operating at the start of the calendar year 2014, uses the installment method of accounting:

Installment sales 400,000
Gross margin on cost 66 2/3%
Inventory, December 31, 2014 80,000
General and admin expenses 40,000
Accounts receivable, Dec. 31, 2014 320,000

Problem 1: The balance of the deferred gross profit account at December 31, 2014 should be:

Reference no: EM132805959

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