Assume ID Cannot Estimate Uncollectible Accounts Accurately and Recognizes Revenue

question 67

Essay

Assume ID cannot estimate uncollectible accounts accurately and recognizes revenue using the cost recovery method.
Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2008 and 2009.

---

Definitions:

Orbicularis Oculi

The orbicularis oculi is a muscle surrounding the eyelid that allows for the closing of the eye.

Sandstorm

A meteorological phenomenon characterized by strong winds lifting and transporting sand and dust from the ground, reducing visibility.

Melanin Pigment

A natural pigment found in most organisms, responsible for hair, skin, and eye color; provides protection against UV radiation.

Choroid

A layer of blood vessels and connective tissue between the sclera and retina in the eye, providing oxygen and nourishment to the outer layers of the retina.