Net instalment accounts receivable is $5,000. Assume the instalment method of revenue recognition is used and a gross profit percentage of 20%. Therefore:
A) $5,000 at sales price has not been collected
B) $1,250 of gross profit has been recognized
C) $6,250 at sales price has not been collected
D) $6,250 of cost has not been collected

Question

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The Answer of Net instalment accounts receivable is $5,000. Assume the instalment method of revenue recognition is used and a gross profit percentage of 20%. Therefore:
A) $5,000 at sales price has not been collected
B) $1,250 of gross profit has been recognized
C) $6,250 at sales price has not been collected
D) $6,250 of cost has not been collected

Net Instalment Accounts Receivable Is $5,000