In 2012, Concord Inc. sells inventory with a cost of $32,000 for $50,000. Concord will receive payments of $14,000 in 2012, $26,000 in 2013, and $10,000 in 2014. If the cost-recovery method applies to this transaction, what would be the journal entry to recognize gross profit at the end of 2013?

Question

Quizplus · Accepted Answer

The Answer of In 2012, Concord Inc. sells inventory with a cost of $32,000 for $50,000. Concord will receive payments of $14,000 in 2012, $26,000 in 2013, and $10,000 in 2014. If the cost-recovery method applies to this transaction, what would be the journal entry to recognize gross profit at the end of 2013?