Company Inc sells gadgets on an installment basis:
| 2019 | 2020 | 2021 | |
| installment sales | 312,000 | 336,000 | 384,000 |
| cost of installment sales | 190,320 | 194,880 | 230,400 |
From sales made during the year
| 2019 | 2020 | 2021 | |
| installment accounts receivable, 1/1/21 | 19,200 | 240,000 | 0 |
| installment accounts receivable, 12/31/21 | 0 | 48,000 | 256,000 |
Repossessed on defaulted accounts were made during 2021, as follows:
From sales made during the year
| 2019 | 2020 | 2021 | |
| accounts balance | 0 | 8,000 | 4,000 |
| net resale of repossessed inventory | 3,600 | 2,800 |
QUESTIONS:
1.total realized gross profit from installment sales during 2021
2.total deferred gross profit from installments sales as of December 31, 2020?
3. net gain/loss on repossession on defaulted sales of 2020 and 2021 was:
1.Calculation Of Total realized gross profit from installment sales during 2021
| Particulars | Amount |
| Total Installment sales made during the year | 384000 |
| Total cost of installment sales | 230400 |
| Total realized gross profit from installment sales | 153600 |
2. Calculation Of total deferred gross profit from installments sales as of December 31, 2020
total deferred gross profit from installments sales =Proportionate Amount stuck in unrealised receivable (256000*153600/384000)=102400
3.Net gain/loss on repossession on defaulted sales of 2020 and 2021 was
| Particulars | 2020 | 2021 |
| Net Resale of Repossed Inventory | 3600 | 2800 |
| Less:Account Balance | 8000 | 4000 |
| Net Gain/Loss | -4400 | -1200 |
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