Business, 27.11.2019 23:31 enriquecastillo1196
On december 15, 2016, rigsby sales co. sold a tract of land that cost $3,500,000 for $5,000,000. rigsby appropriately uses the installment sales method of accounting for this transaction. terms called for a down payment of $420,000 with the balance in two equal annual installments payable on december 15, 2017, and december 15, 2018. ignore interest charges, rigsby has a december 31 year-end.
in its december 31, 2016. balance sheet, rigsby would report:
a. installment receivables (net) of $3,206,000
b. deferred gross profit of $126,000.
c. installment receivables (net) of $4,580,000
d. realized gross profit of $126,000.
Answers: 2
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On december 15, 2016, rigsby sales co. sold a tract of land that cost $3,500,000 for $5,000,000. rig...
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