Posted by cyndi on .
Rosson Corporation, which began business on January 1, 2008, appropriately uses the installment sales method of accounting for income tax reporting purposes. The following data are available for 2008:
Installment accounts receivable, 12/31/2008 $200,000
Installment sales for 2008 350,000
Gross profit on sales 40%
Under the installment sales method, what would be Rosson’s deferred gross profit at December 31, 2008?
Intermediate accounting -