Newton Co Had Installment Sales of $1,000,000 and Cost of Installment

question 122

Essay

Newton Co. had installment sales of $1,000,000 and cost of installment sales of $750,000 in 2014. A 2014 sale resulted in a default in 2016, at which time the balance of the installment receivable was $36,000. The repossessed merchandise had a fair value of $21,000.
Instructions
(a) Calculate the rate of gross profit on 2014 installment sales.
(b) Make the entry to record the repossession.

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Definitions:

Chronic Glomerular Nephritis

A long-term kidney condition involving inflammation and damage to the glomeruli, leading to impaired kidney function.

Renal Failure

A medical condition where the kidneys lose their ability to filter waste and excess fluids from the blood effectively.

Anemia

A state characterized by a lack of sufficient red blood cells or hemoglobin, leading to a pale complexion and fatigue.

Chronic Glomerular Nephritis

A long-term kidney condition characterized by inflammation and eventual scarring of the glomeruli, affecting the kidney's filtering ability.