Rigsby appropriately uses the installment sale method

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On December 15, 2011 Risby Sales Co. sold a track of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payable on Dec.15,2012 and December 15, 2013. Ignore interest charges. Rigsby has a Dec 31 year end.

a a realized gross profit of $100,000

b. a deferred gross profit of $100,000

c. an installment receivables (net) of 3,200,000

d. an installment receivables (net) of $4,000,000

Reference no: EM13320524

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