Response to the following problem:
Curiosity Company provided the following financial information for its installment-sales for the current year.
Financial Data:
Installment sales for current year $ 800,000
Cost of Goods Sold on installment basis $ 600,000
Payments by customers $ 320,000
Repossessed Merchandise - Unpaid balances $ 52,000
Repossessed Merchandise - Estimated Value $ 26,800
Required:
a) Prepare journal entries for the end of the year based on the information above.
b) Prepare the entry to record the gross profit realized in the current year.