On august 31 2013 the silva company sold merchandise to the

Reference no: EM13580867

On August 31, 2013, the Silva Company sold merchandise to the Bendix Corporation for $250,000. Terms of the sale called for a down payment of $50,000 and four annual installments of $50,000 due on each August 31, beginning August 31, 2014. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The book value of the merchandise on Silva's books on the date of sale was $150,000. The perpetual inventory system is used. The company's fiscal year-end is December 31.

Required:

1.	Complete the table below by entering the amount of gross profit to be recognized in each of the five years of the installment sale applying each of the following methods:
	a. Point of delivery revenue recognition.
	b. Installment sales method.
	c. Cost recovery method. and I need Journal entries (ignore interest charges) for point of delivery and installments sales method, and cost recovery method . Record the sale of merchandise on August 31, 2013. 2. Record the cost of goods sold on August 31, 2013. 3. Record the cash collections on August 31, 2013. 4. Record the gross profit recognized on August 31, 2013. 5. Record the cash collections on August 31, 2014. 6. Record the gross profit recognized on August 31, 2014. 7. Record the cash collections on August 31, 2015. 8. Record the gross profit recognized on August 31, 2015. 9. Record the cash collections on August 31, 2016. 10. Record the gross profit recognized on August 31, 2016. 11. Record the cash collections on August 31, 2017 Record the gross profit recognized on August 31, 2017

Reference no: EM13580867

Questions Cloud

Prepare journal entries on the books of impala company to : the inventory of oheto company on december 31 2013 consists of the following items.part no.quantitycost per unitcost to

Besides direct materials and direct labor manufacturing : dvds manufactures and sells dvd players in two countries. it manufactures two models basic and custom in the same

Assume that the company produces and sells 88000 units : a partially completed schedule of the companys total and per unit costs over a relevant range of 58000 to 98000 units

Nick and jolene are married nick is 61 and retired in 2011 : nick and jolene are married. nick is 61 and retired in 2011 from his job with amalgamated company. jolene is 56 and

On august 31 2013 the silva company sold merchandise to the : on august 31 2013 the silva company sold merchandise to the bendix corporation for 250000. terms of the sale called for

On february 1 2013 arrow construction co entered into a : on february 1 2013 arrow construction co. entered into a three year construction contract to build a bridge for a price

From institution- and resource-based views identify the : from institution- and resource-based views identify the obstacles confronting mnes from emerging economies interested

Some years ago general motors installed industrial robots : some years ago general motors installed industrial robots worth billions of dollars in its automobile assembly plants

A parallel plate capacitor with plate separation d is : a parallel plate capacitor with plate separation d is connected to a battery. the capacitor is fully charged to q

User Account

All Pages