Business, 24.10.2019 23:43 nanyckhadiarracom

Reliable enterprises sells distressed merchandise on extended credit terms. collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. it is unlikely that repossessed merchandise is in condition to be re-sold. therefore, reliable uses the cost recovery method. merchandise costing $29,750 was sold for $57,000 in 2020. collections on this sale were $20,000 in 2020, $14,100 in 2021, and $22,900 in 2022. in its 2020 year-end balance sheet, reliable would report installment receivables (net) of:

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Reliable enterprises sells distressed merchandise on extended credit terms. collections on these sal...

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