Charter Corporation, which began business in 2013, appropriately uses the installment
Question # 00073967
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Updated on: 06/02/2015 04:14 AM Due on: 06/02/2015
Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2013 and 2014:
| 2013 | 2014 | |||||
| Installment sales | $ | 360,000 | $ | 350,000 | ||
| Cost of installment sales | 234,000 | 245,000 | ||||
| Cash collections on installment sales during: | ||||||
| 2013 | 150,000 | 100,000 | ||||
| 2014 | — | 120,000 | ||||
| Required: |
Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system. |
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Rating:
/5
Solution: Charter Corporation, which began business in 2013, appropriately uses the installment