Abstract In teaching the topic of installment sales to students, or in explaining procedures to bookkeepers of enterprises selling for cash as well as by the installment plan, one encounters difficulty in the adjustments brought about by repossessions. The student as well as the bookkeeper is confused as to the percentage to use in the adjustment, the profit or cost percentage. After determination of the percentage, difficulty is encountered in its application. Both the student and the bookkeeper are further troubled by the fact that after clearing the deferred profit account for the percentage of profit contained in the unpaid installment accounts and crediting the repossession loss account which appears on the books, a profit may result on the repossession which should be refunded to the purchaser. The writer has used for many years a method which requires no adjusting entries for repossessions and eliminates the possibility of suits by purchasers to recover the profit, if any, resulting from repossessions under Section 21 of the Uniform Conditional Sales Act.

Abstract In this article the authors comment on an article related to placement of taxes in income statement, which was published in an earlier issue of the journal "The Accounting Review," as of January 1946. There are several kinds of revenue deductions which are nonetheless broadly in the same pew when it comes to the over-all calculation of net corporate income. First of the three classes of deductions is cost, in the sense of goods and services definitely consumed in the process of production. Second is losses, in the sense of outlays of one sort or another which have lost all significance so far as future operations are concerned, even though not having made any recognizable contribution in the past operations and last is taxes, which is payments to governmental units as computed on various bases and representing services only in the vague general sense in which government makes a contribution to the carrying on of the particular business enterprise. All of these classes of deductions are in the same boat when it comes to the question of determining profits.