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Question(s) / Instruction(s):

Alpine Engineering (AE) sells Delaware Delicious Ice Creamery (DDIC) a “state of the art,” fast, and efficient ice cream maker for use in its flag-ship outlet at The Prominade in Marlton for $30,000 (cost to manufacture and deliver was $21,000 for AE). With 30% due on delivery, 25% 3 months later, 20% after 6 months, 15% after 9, and the last two 5% payments after 12 and 15 months respectively. AE chooses to account for this as an Installment Sale.

1. What entries would be made at the time of delivery by AE?

2. How much profit would be recognized when each payment is received by AE?

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