Ford Appliance Center Records Revenue on the Installment Sales Method

question 113

Multiple Choice

Ford Appliance Center records revenue on the installment sales method. The following information is available for the first two years of business.
$\begin{array}{lrr}&\text { Year } 1&\text { Year } 2\\\text { Sales } & \$ \overline{200,000} & \$ 2 \overline{50,000} \\\text { Cost of goods sold } & 140,000 & 162,500 \\\text { Cash collections: } & & \\\quad \text { Year 1 sales } & 100,000 & 80,000 \\\quad \text { Year 2 sales } & & 130,000\end{array}$
-Assume that Ford Appliance Center reports installment sales in accordance with IFRS rules.How much realized gross profit on installment sales will Ford recognize in Year 1?

• A)$0
• B)$30,000
• C)$60,000
• D)$100,000

---

Definitions:

Budget And Time Frame

The allocation of financial resources and the specific duration planned for the completion of a project or activity.

Research Plan

A detailed outline of the objectives, methodology, and timeline for a research project, including how data will be collected and analyzed.

Measures Of Success

Criteria or benchmarks used to evaluate the effectiveness or achievement of a specific goal or objective.

Marketing Research Measure

Techniques and tools used to gather, analyze, and interpret data about market conditions, consumer behavior, and product viability for informed decision-making.