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The company had installment sales in Year 1 of $500,000, in Year 2 of $400,000, and in Year 3 of $300,000. The gross profit percentage of each year,...
The company had installment sales in Year 1 of $500,000, in Year 2 of $400,000, and in Year 3 of $300,000. The gross profit percentage of each year, in order, was 20%, 30%, and 40%. Past history has shown that 40% of total sales are collected in the year of the sale, 50% in the year after the sale, and 10% in the second year after the sale or thereafter. Type integers only. Do not type in any sign such as +/-/,/;/ and etc. The proforma income statments for the years 1 through 3 are:Income statement (Installment Sales Method) Year 1 Year 2 Year 3 Sales Revenues $ $ $ Cost of Installment Sales $ $ $ Deferred Gross Profit on installment sales of current year $ $ $ Gross profit realized on installment sales of prior years $ $ $ Total gross profit recognized this year $ $ $ on Balance Sheet Account Receivable (net) $ $ $ Income statement (Cost Recovery Method) Year 1 Year 2 Year 3 Sales Revenues $ $ $ Cost of Installment Sales $ $ $ Deferred Gross Profit on installment sales of current year $ $ $ Gross profit realized on installment sales of prior years $ $ $ Total gross profit recognized this year $ $ $ on Balance Sheet Account Receivable (net) $ $ $
