In its December 31,2016,balance sheet,Rigsby would report:

Question

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Installment receivables (net) are reported at the net amount of the receivable, which is the gross amount of the receivable minus any contra-revenue accounts, such as sales discounts and sales returns and allowances. In this case, the gross amount of the receivable is $4,000,000 and the contra-revenue account is sales discounts of $800,000. Therefore, the net amount of the receivable is $3,200,000.

In Its December 31,2016,balance Sheet,Rigsby Would Report