Just what balance sheet accounts result from installment sale accounting?
What income statement accounts result from installment sale accounting?
On the balance sheet accounts, what is always the mathematical relationship between two of them?
Where do you think the deferred gross profit on installment sales should be placed on the balance sheet and why? What is present GAAP for the latter?© BrainMass Inc. brainmass.com March 4, 2021, 7:52 pm ad1c9bdddf
(1) There are 2 accounts on the balance sheet that would get affected by the type of sale - cash and accounts receivable (AR) (surely enough inventory gets affected also since that's what we sell, however it doesn't matter for our current discussion). Cash account gets down ...
The expert examines balance sheet accounting results from installment sale accounting.