Answer:
$650,000
Explanation:
Calculation to determine what Lake would report in its December 31, 2021, balance sheet
First step is to calculate Net installment Receiveble for 2020 sales
2020 sales Installment Receiveble 300,000
($900,000-$300,000 2018 Collection -$300,000 2021 Collection)
Less Deferred gross profit $150,000
(450,000-$150,000 2020 collection-$150,000 2021 collection )
Net installment Receiveble for 2020 sales $150,000
Second step is to determine Net installment Receiveble for 2021 sales
2021 sales Installment Receiveble $860,000
($1,290,000-$430,000
Less Deferred gross profit $360,000
($600,000-$240,000)
Net installment Receiveble for 2021 sales $500,000
Now let determine what Lake would report in its December 31, 2021, balance sheet
December 31, 2021, balance sheet=$150,000+$500,000
December 31, 2021, balance sheet=$650,000
Therefore In its December 31, 2021, balance sheet, Lake would report: $650,000
