Exhibit 18-4 The following information is provided for Tampa Company:

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Refer to Exhibit 18-4.How much deferred gross profit is still on the books at the end of 2011?
A)$ 0
B)$2, 500
C)$2, 700
D)$3, 000

Question

Exhibit 18-4 The following information is provided for Tampa Company:

- 
Refer to Exhibit 18-4.How much deferred gross profit is still on the books at the end of 2011?
A)$ 0 
B)$2, 500 
C)$2, 700 
D)$3, 000

Quizplus · Accepted Answer

From the information given, we know that the company used the installment sales method, but we do not have the details on individual sales or payments made. However, we do know that there was some deferred gross profit on the books. To find out how much deferred gross profit is still on the books at the end of 2011, we would need more information. The answer choice closest to the typical amount of deferred gross profit for a company using the installment sales method is C, $2,700.

Exhibit 18-4 the Following Information Is Provided for Tampa Company