Assume the Abokair Corporation sold $30,000 worth of merchandise on the installment basis.The cost of the merchandise was $24,000,and collectibility of the receivable is uncertain.Collection in the current year on the account is $8,000.How much gross profit should be reported as realized?

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The gross profit on the sale is calculated as the difference between the sales amount and the cost of the merchandise, which is $30,000 - $24,000 = $6,000. However, because collectibility is uncertain, the gross profit is recognized as cash is collected. The gross profit percentage is $6,000 / $30,000 = 20%. Therefore, of the $8,000 collected, 20% represents the realized gross profit, which is $8,000 * 20% = $1,600.

Assume the Abokair Corporation Sold $30,000 Worth of Merchandise on the Installment