Ford Appliance Center Records Revenue on the Installment Sales Method

question 98

Multiple Choice

Ford Appliance Center records revenue on the installment sales method. The following information is available for the first two years of business.
$\begin{array}{lrr}&\text { Year } 1&\text { Year } 2\\\text { Sales } & \$ \overline{200,000} & \$ 2 \overline{50,000} \\\text { Cost of goods sold } & 140,000 & 162,500 \\\text { Cash collections: } & & \\\quad \text { Year 1 sales } & 100,000 & 80,000 \\\quad \text { Year 2 sales } & & 130,000\end{array}$
-Which one of the following entries properly records the cost of installment goods sold for Year 2?

• A) DR Cost of installment goods sold \(\quad\)162,500
• CR Inventory\(\quad\)\(\quad\)162,500
• B) DR Cost of installment goods sold \(\quad 302,500\)
• CR Inventory\(\quad\)\(\quad\)302,500
• C) DR Cost of installment goods sold\(\quad\)\(\quad\)162,500
• CR Installment sales revenue\(\quad\)\(\quad\)162,500
• D) DR Cost of installment goods sold\(\quad\)\(\quad\)302,500
• CR Installment sales revenue\(\quad\)\(\quad\)302,500

Distinguish between cellular organisms and non-cellular entities.

Understand the sequence of events in the evolution of life on Earth.

Familiarize with the conditions and environments that support the hypothesis of life's origin.

Recognize the significant evolutionary milestones, including the development of sexual reproduction and the appearance of eukaryotes.

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Definitions:

Stepping Motions

The movements or actions resembling steps, often observed in infants as a precursor to walking.

Accommodation

in psychology, the process of adapting or adjusting one's cognitive schemas and perceptions to incorporate new information or experiences.

Cognitive Process

The mental actions or operations involved in learning, thinking, and understanding; it encompasses perception, memory, judgment, and reasoning.

Disequilibrium

A state of imbalance or instability, often used in economics to describe markets where supply and demand are not in balance, and in psychology, to describe the conflict experienced when existing knowledge does not fit with new information.