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Installment Sales Method

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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

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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 ...

Solution Summary

The solution explains how to determine the amount of collections using the Installment Sales Method