Lott Co. records all sales using the installment method of accounting. Installment sales contracts call for 36 equal monthly cash payments. According to the FASB's conceptual framework, the amount of deferred gross profit relating to collections 12 months beyond the balance sheet date should be reported in the
A) current liabilities section as a deferred revenue.
B) noncurrent liabilities section as a deferred revenue.
C) current assets section as a contra account.
D) noncurrent assets section as a contra account.

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The Answer of Lott Co. records all sales using the installment method of accounting. Installment sales contracts call for 36 equal monthly cash payments. According to the FASB's conceptual framework, the amount of deferred gross profit relating to collections 12 months beyond the balance sheet date should be reported in the
A) current liabilities section as a deferred revenue.
B) noncurrent liabilities section as a deferred revenue.
C) current assets section as a contra account.
D) noncurrent assets section as a contra account.

Lott Co Records All Sales Using the Installment Method of Accounting