Refer to LaGrow Developers.Assuming that LaGrow uses the cost-recovery 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

Under the cost-recovery method, the net amount of installment accounts receivable reported on the balance sheet is equal to the cost of the goods sold on the installment plan. In this case, the cost of the goods sold on the installment plan is $100,000, so the net amount of installment accounts receivable reported on the balance sheet would be $100,000.