Problem 5: The following selected accounts were taken from the trial balance ofRomen Company as December 31, 2020:750,000150,000450,0002,700,000525,0003,900,00030,000150,000240,000900,0001,800,0004,460,000222,000393,600150,0002,787,500Accounts receivableInstallment receivable – 2018Installment receivable - 2019Installment receivable – 2020Beginning inventoryPurchasesFreight-inRepossessed merchandise @ NRVRepossession lossCash salesCredit salesInstallment salesDeferred gross profit – 2018Deferred gross profit – 2019Operating expensesCost of installment salesAdditional information:a. Gross profit rate for 2018 and 2019 installment sales were 30% and32%, respectively.b. The entry for repossessed goods was:Repossessed MerchandiseRepossession lossInstallment Receivable – 2018150,000240,000180,000210,000c. Merchandise on hand at the end of 2020 (new and repossessed) was 282,000.Installment Received - 2019Required: Compute for the following :1. Total realized gross profit in 2020.2. Net income in 2020.

The question is based on the concept of Financial Accounting.

Problem 5: The following selected accounts were taken from the trial balance of Romen Company as December 31, 2020: Accounts receivable 750,000 150,000 450,000 2,700,000 525,000 3,900,000 30,000 150,000 240,000 900,000 1 800 000 Installment receivable – 2018 Installment receivable - 2019 Installment receivable – 2020 Beginning inventory Purchases Freight-in Repossessed merchandise @ NRV Repossession loss Cash sales Credit sales

Problem 5: The following selected accounts were taken from the trial balance of Romen Company as December 31, 2020: Accounts receivable 750,000 150,000 450,000 2,700,000 525,000 3,900,000 30,000 150,000 240,000 900,000 1 800 000 Installment receivable – 2018 Installment receivable - 2019 Installment receivable – 2020 Beginning inventory Purchases Freight-in Repossessed merchandise @ NRV Repossession loss Cash sales Credit sales

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 21E: (Appendix 21.1) Visual Inspection The following changes in account balances were taken from Walson...

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