On december 15,2013, rigsby sales co. sold a tract of land that cost $36 for $45. rigsby appropriately uses the installment sale method of accounting for this transaction. terms called for a down payment of $5 with the balance in two equal annual installments payable on december 15,2014, and december 15,2015. ignore interest charges. rigsby has a december31 year-end

q1: in 2013, rigsby would recognize realized gross profits of

q2: in 2014, rigsby would recognize realized gross profits of

q3: in its december 31, 2013, balance sheet, rigsby would report:

a realized gross profit of $1

b: deferred gross profit of $1

c: installment receivables(net) of $32

d: installment receivables(net) of $4

q4: at dec 31,2014, rigsby would report in its balance sheet:

a: realized gross profit of $5

b: deferred gross profit of $4

c: realized gross profit of $4

d: cost of installment sales $16

Rigsby would recognize realized gross profit of:

Q1: in 2013, Rigsby would recognize realized gross profits of

A Realized gross profit of $100000

Explanation:

The installment method is an approach to revenue recognition in which the business owner defers gross profit on a sale until receiving cash for the sale from the buyer.

Gross profit % = ($4,500,000 - 3,600,000)/$4,500,000 = 20%

2013: 20% x $500,000 = $100,000

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

answer; ///global;