Prepare a table showing the amount of gp to be recognized

Reference no: EM13601764

On August 31, 2012, the company sold merchandise of the A corporation for 500,000. Terms of the sale called for a down payment of 100,000 & four annual installments of 100,000 due on each August 31, beginning August 31,2013. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The book value of the merchandise on "company" books on the date of sale was 300,000. The perpetual inventory system is used. The company's fiscal year-end is December 31.

1. Prepare a table showing the amount of GP to be recognized in each of the five years of the installment sale applying each of the following methods: Point of delivery revenue recognition, installment sales method and cost recovery method.

Reference no: EM13601764

Questions Cloud

On january 10 bette eaton uses her stage co credit card to : on january 10 bette eaton uses her stage co. credit card to purchase merchandise from stage co. for 4900. on february

Unfortunately the car needs a few major repairs now among : susan crossing purchased a used ford focus for 8000. since purchasing the car she has spent the following amounts on

The man and the daughter then carefully trade places we : a man with a mass of 80.0 kg is out fishing with his daughter who has a mass of 35.0 kg. they are initially sitting at

The magnitude and direction of the smallest force in : an elastic exercise band is grasped and then is stretched. knowing that the tension in portion de of the band is 70

Prepare a table showing the amount of gp to be recognized : on august 31 2012 the company sold merchandise of the a corporation for 500000. terms of the sale called for a down

The time to complete this flat route follows a normal : two friends are training for the boston marathon. james is training on a hilly jogging loop. forthe general population

A 2 kg softball is pitched to you at 20 ms you hit the ball : question a 2 kg softball is pitched to you at 20 ms. you hit the ball back along the same path and at the same speed.

The controller for tender bird poultry inc estimates that : the controller for tender bird poultry inc. estimates that the companys fixed overhead is 150000 per year. she also has

Firm a makes and sells motorcycle the total cost of each : firm a makes and sells motorcycle. the total cost of each cycle is the sum of the cost of frames assembly and engine.

User Account

All Pages