Newton Co. had installment sales of $1,000,000 and cost of installment sales of $750,000 in 2014. A 2014 sale resulted in a default in 2016, at which time the balance of the installment receivable was $36,000. The repossessed merchandise had a fair value of $21,000.
Instructions
(a) Calculate the rate of gross profit on 2014 installment sales.
(b) Make the entry to record the repossession.

Question

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The Answer of Newton Co. had installment sales of $1,000,000 and cost of installment sales of $750,000 in 2014. A 2014 sale resulted in a default in 2016, at which time the balance of the installment receivable was $36,000. The repossessed merchandise had a fair value of $21,000.
Instructions
(a) Calculate the rate of gross profit on 2014 installment sales.
(b) Make the entry to record the repossession.

Newton Co Had Installment Sales of $1,000,000 and Cost of Installment