Sawyer Furniture Company Concluded Its First Year of Operations in Which

question 58

Essay

Sawyer Furniture Company concluded its first year of operations in which it made sales of $900,000, all on installment. Collections during the year from down payments and installments totaled $300,000. Purchases for the year totaled $710,000; the cost of merchandise on hand at the end of the year was $80,000.
InstructionsUsing the installment-sales method, make summary entries to record:
(a) the installment sales and cash collections;(b) the cost of installment sales;(c) the unrealized gross profit;(d) the realized gross profit.