Leno Distributing, which began operating on January 1, appropriately uses the installment method of accounting. The following information pertains to Leno's operations for the first year:

The balance in the deferred gross profit account at December 31 should be
A) $400,000.
B) $320,000.
C) $240,000.
D) $200,000.

Question

Leno Distributing, which began operating on January 1, appropriately uses the installment method of accounting. The following information pertains to Leno's operations for the first year:

The balance in the deferred gross profit account at December 31 should be
A) $400,000. 
B) $320,000. 
C) $240,000. 
D) $200,000.

Quizplus · Accepted Answer

The Answer of Leno Distributing, which began operating on January 1, appropriately uses the installment method of accounting. The following information pertains to Leno's operations for the first year:

The balance in the deferred gross profit account at December 31 should be
A) $400,000. 
B) $320,000. 
C) $240,000. 
D) $200,000.

Leno Distributing, Which Began Operating on January 1, Appropriately Uses