Can someone let me know if I did the following problem correct?
On January 1, 2007, Barkly Company sold property for $200,000. The note will be collected as follows: $100,000 in 2007, $60,000 in 2008, and $40,000 in 2009. The property had cost Barkly $150,000 when it was purchased in 2005.
1) Compute the amount of gross profit realized for 2007, assuming Barkly uses the installment-sales method.
2007
Installment A/R 200,000
Installment Sales (200,000)
Cash 100,000
Installment A/R (100,000)
Cost of installment 150,000
Inventory (150,000)
Installment Sales 200,000
COGS (150,000)
Deferred Gross Profit (50,000)
Deferred Profit 25,000
Gross Profit (25,000)
