Using the Information in the Following Tables, Determine the Amount

question 23

Essay

Using the information in the following tables, determine the amount of revenue and expense reported in years 1-4 and the totals reported for all 4 years under both the percentage-of-completion method and the installment method.
$\begin{array}{lll}& \text { Cash } & \text { Costs } \\\text { Year } & \text { Collected } & \text { Incurred }\\1 & \$ 10 & \$ 500,000 \\2 & 600,000 & 1,000,000 \\3 & 1,200,000 & 300,000 \\4 & 600.000 & 200.000\\\text { Total }&\$2,400,000&\$2,000,000\\\end{array}$

$\begin{array}{lllll}&\text { PERCENTAGE OF }\\&\text { COMPLETION }&\text { INSTALLMENT SALES }\\\text { Year }&\text { Revenue }&\text { Expense }&\text { Revenue }&\text { Expense }\\1 & \text { A } & \text { B } & \text { K } & \text { L } \\2 & \mathrm{C} & \mathrm{D} & \mathrm{M} & \mathrm{N} \\3 & \mathrm{E} & \mathrm{F} & \mathrm{O} & \mathrm{P} \\4 & \mathrm{G} & \mathrm{H} & \mathrm{O} & \mathrm{R}\end{array}$

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Definitions:

Excess Supply

When the quantity supplied of a good exceeds the quantity demanded.

Excess Demand

When the quantity demanded of a good exceeds the quantity supplied.

Utilities Possibilities Frontier

A graphical representation that shows the maximum amount of two different utilities that can be achieved with a given set of resources.

Unattainable

Refers to goals, objectives, or levels of production that cannot be achieved with the current availability of resources or technology.