Please help me with determining the collections amount during 2009 on the installment a/r for 2007, 2008, and 2009.
Ruxton, Inc. - Installment Sales Method
In the question deferred gross profit for 2003 and 2004 is given which is assumed to be for 2007 and 2008
The sales for 2009 are $1,000,000 and the accounts receivables are $750,000. The difference of 1,000,000-750,000=250,000 has been collected in 2009.
For collection in 2008 we first find the ...
The solution explains how to determine the amount of collections using the Installment Sales Method