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Problem 1: Under the installment sales method, the gross rate based on the sale may be computed as :
a. Sales divided by gross profit
b. Gross profit divided by costs of sales
c. Deferred gross profit divided by installment account receivable
d. All of the above
Problem 2: When assets that have been sold and accounted for by the instalment method subsequently repossessed and returned to inventory, they should be recorded on books at
a. Book value
b. Selling price
c. Fair market value plus reconditioning cost
d. Net realizable value less reconditioning cos
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