Boise Marine sells jet skis and other powered recreational equipment. Customers are committed to pay 1/3 of the sales price of a jet ski within one week of the purchase, and then pay another 1/3 each year for the next two years. Boise has little information about collectability of these receivables, but they can normally repossess a ski and resell it without incurring a loss. In 2008 Boise began operations and sold jet skis with a total price of $900,000 that cost Boise $450,000. Boise actually collected $300,000 in 2008, $300,000 in 2009, and $300,000 in 2010 associated with those sales. In 2009 Boise sold jet skis with a total price of $1,500,000 that cost Boise $900,000. Boise actually collected $500,000 in 2009, $300,000 in 2010, and $250,000 in 2011 associated with those sales. In 2011 Boise also repossessed $200,000 of jet skis that were sold in 2009. Those jet skis had a fair value of $75,000 at the time they were repossessed.
Required:
1) Prepare all required 2008, 2009, 2010 and 2011 journal entries. 2) Determine the balance sheet presentation of only the accounts specific to the accounting you have selected to apply (i.e. disregard cash) for 2008, 2009, and 2010.