Ford Appliance Center Records Revenue on the Installment Sales Method

question 1

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 deferral of gross profit on Year 2 installment sales not yet collected?

• A) DR Cost of installment goods sold \( \quad 62,500 \)
• DR Deferred gross profit-Year \( 2 \quad 87,500 \)
• CR Installment sales revenue \( \quad 150,000\)
• B) \(\begin{array}{lr}
• \text { DR Cost of installment goods sold } & 302,500 \\
• \text { DR Deferred gross profit-Year 1 } & 60,000 \\
• \text { DR Deferred gross profit-Year 2 } & 87,500\\\text { CR Installment sales revenue }&450,000
• \end{array}\)
• C) DR Deferred gross profit-Year 2\(\quad\)\(\quad\)42,000
• CR Deferred gross profit-Adjustment to
• accounts receivable-Year 2\(\quad\)\(\quad\)\(\quad\)\(\quad\)42,000
• D) DR Deferred gross profit_-Adjustment to accounts
• Receivable-Year 2\(\quad\)\(\quad\)42,000
• CR Deferred gross profit-Year 2\(\quad\)\(\quad\)42,000

Recognize the significance of disease vectors and the transmission routes of infectious diseases.

Identify key factors and strategies in controlling and preventing infectious and non-infectious diseases.

Comprehend the principles and importance of immunization in disease prevention.

Understand the concepts of bioaccumulation and biomagnification, particularly in relation to endocrine disruptors.

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