Refer to LaGrow Developers.Assuming that LaGrow uses the installment sales method,in its December 31,2017 balance sheet,the company would report ________.
A)$100,000 net installment accounts receivable
B)$1,500,000 net installment accounts receivable
C)$2,500,000 net installment accounts receivable
D)$3,500,000 net installment accounts receivable

Question

Quizplus · Accepted Answer

The installment sales method recognizes revenue and expenses proportionally as cash is collected. The net installment accounts receivable would be the total amount of installment sales minus the cash collected. If $1,500,000 is the remaining balance, it would be reported as net installment accounts receivable.