Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lake power sports sells jet skis and other powered

Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of...

50.1K

Verified Solution

Question

Accounting

Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the installment sales method for revenue recognition. In 2020, Lake began operations and sold jet skis with a total price of $1,020,000 that cost Lake $510,000. Lake collected $340,000 in 2020, $340,000 in 2021, and $340,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,470,000 that cost Lake $882,000. Lake collected $490,000 in 2021, $365,000 in 2022, and $365,000 in 2023 associated with those sales. In 2023, Lake also repossessed $250,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $93,750 at the time they were repossessed. In 2022, Lake would recognize realized gross profit of:

Multiple Choice

  • $170,000.

  • $486,000.

  • $0.

  • $316,000.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

Perform the indicated operation.(4x3-10x +8x-9) - (10x - 7x - 7x+9)Write the polynomial in standard...

Basic Math
1.2K views

If a statement and its converse are both true which of the other forms inverse...

Statistics
1.2K views

From experience an airline knows that only 80 of the passengers booked for a certain...

Statistics
1.2K views

27 Deaths among young people Among persons aged 15 24 years in the United States...

Calculus
1.2K views

Describe the graph of fit f 0 1 and f x 3 for x

Accounting
1.2K views

With respect to any business of your choose, discuss how computerized accounting information systems have...

Accounting
1.2K views

Glow Corporation has 50,000 shares of preferred shares outstanding, with annual dividends paid at the...

Accounting
1.2K views

Clculo de la variacin del precio de los materiales directos y la variacin del uso...

Accounting
1.2K views

Which of the following statements is true concerning an auditors responsibilities regarding financial statements?

Accounting
1.2K views

Required information Problem 11-41 (LO 11-3, LO 11-4) (Algo) (The following information applies to the...

Accounting
1.2K views

Pepper Enterprises owns 95 percent of Salt Corporation. On January 1,20X1, Salt issued $260,000 of...

Accounting
1.2K views

The inventory of Royal Decking consisted of five products. Information about ending inventory is as...