Kenny harrison corp a capital goods manufacturing business

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Reference no: EM13566138

Kenny Harrison Corp., a capital goods manufacturing business that started Jan 4, 2008, and operates on a calendar- year basis. Plus, the use the installment sales method of profit recognition in accounting for all its sales. The following data were taken from 2008 and 2009 records. Item: 2008 2009 Installment Sales 480,000 620,000 Gross profit as a percent of costs 25% 28% Cash collections on sales of 2008 140,000 240,000 Cash collections on sales of 2009 0 180,000 Directions: A- Compute the amount of realized gross profit to be recognized on the 2009 income statement, using the installment sales method. B- Compute the amount of realized gross profit to be recognized on the income statement, using the cost-recovery method.

Reference no: EM13566138

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