Exhibit 17-4 The following information is provided for Fort Myers Company:
Fort Myers used the installment sales method.
-Refer to Exhibit 17-4. How much deferred gross profit is still on the books at the end of 2015?
A) $ 0
B) $2,500
C) $2,700
D) $3,000

Question

Exhibit 17-4 The following information is provided for Fort Myers Company: 
 Fort Myers used the installment sales method.
-Refer to Exhibit 17-4. How much deferred gross profit is still on the books at the end of 2015?
A) $ 0 
B) $2,500 
C) $2,700 
D) $3,000

Quizplus · Accepted Answer

The deferred gross profit is calculated based on the portion of gross profit from installment sales that has not yet been recognized as income. The amount of $2,700 is likely the remaining deferred gross profit at the end of 2015, based on the context provided in Exhibit 17-4.

Exhibit 17-4 the Following Information Is Provided for Fort Myers