A Firm Uses the Instalment Method of Revenue Recognition on an Item

question 48

Multiple Choice

A firm uses the instalment method of revenue recognition on an item with a cash selling price of $1,000 and cost of $600. During the year of sale, the firm received $250 from the customer. Therefore, the net instalment account receivable equals which of the following amounts at the end of the year of sale?

• A) $750
• B) $450
• C) $300
• D) $400

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Definitions:

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The awareness and consideration of environmental issues and actions to reduce one's carbon footprint and harm to the environment.

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Involves creating environments, systems, or products that address societal challenges and improve community well-being through participatory design processes.

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