installment sales Flashcards
1
Q
when used
A
only when there is NO basis for estimating collectibility
most CONSERVATIVE method
2
Q
when is revenue recognized
A
only when COLLECTED
3
Q
Formula
A
1) GP= sale less cogs
2) GP%= GP/sales price
3) Earned GP= cash collectedGP%
4) Deferred GP= GP% ending AR **(contra asset)
