(Answered)-Mantle Inc. sells merchandise for cash and also on the - (2025 Updated Original AI-Free Solution

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Question

Mantle?Inc.?sells?merchandise?for?cash?and?also?on?the?installment?plan.?Entries?to?record?cost?of?goods?sold?are?made?at?the?end?of?each?year.

Repossessions?of?merchandise?(sold?in?2014)?were?made?in?2015?and?were?recorded?correctly?as?follows.

Deferred?Gross?Profit,?20146,480
Repossessed?Merchandise8,820
Loss?on?Repossession2,700
?????????Installment?Accounts?Receivable,?201418,000

Part?of?this?repossessed?merchandise?was?sold?for?cash?during?2015,?and?the?sale?was?recorded?by?a?debit?to?Cash?and?a?credit?to?Sales?Revenue.

The?inventory?of?repossessed?merchandise?on?hand?December?31,?2015,?is?$4,900;?of?new?merchandise,?$110,000.?There?was?no?repossessed?merchandise?on?hand?January?1,?2015.

Collections?on?accounts?receivable?during?2015?were:

Installment?Accounts?Receivable,?2014$98,000
Installment?Accounts?Receivable,?201578,000

The?cost?of?the?merchandise?sold?under?the?installment?plan?during?2015?was?$125,050.?The?rate?of?gross?profit?on?2014?and?on?2015?installment?sales?can?be?computed?from?the?information?given.