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bekanmom
Oct 24, 2010, 03:07 PM
Refer to the following data for Joe's Appliance Center. The business records revenue using the installment sales method.

Year 1 Year 2
Sales $200,000 $250,000
Cost of Goods Sold 140,000 162,500
Cash Collections from
Year 1 Sales: 100,000 80,000
Year 2 Sales: 130,000

How much realized gross profit on installment sales will the business record in Year 2?