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.

Comprehend the challenges in predicting court decisions and the application of law in ethical dilemmas.

Identify the crucial role of management in setting ethical standards and expectations in the workplace.

Analyze different philosophical views on the role of business in society, including profit maximization and duty to stakeholders.

Grasp the foundational ethical theories, including duty-based ethics, outcome-based ethics, and the principle of rights theory.

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Definitions:

Postage Expense

The cost incurred by a business for sending mail, packages, or parcels through the postal service or courier companies.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers to maintain control.

Depositor's Bank Account

An account maintained by an individual at a bank in which they can deposit or withdraw funds.

Bank Fee

Charges imposed by banks for various services or as penalties for not meeting certain banking requirements.