The following summarized information relates to the installment-sales activity of Phillops Stores, Inc. for the year 2012.
- Installment sales during 2012 $576,000
- Cost of goods sold on installment basis $374,400
- Collections from customers $248,000
- Unpaid balances on merchandise repossessed $41,300
- Estimated value of merchandise repossessed $14,400
a)prepare journal entries at the end of 2012 to record on the books of Phillips Stores Inc the summarized data above.
1) To Record installment sales
2) to record cash collected in installment receivables
3) To record cost of installment sales
4) To record merchandise repossessed
5) To defer gross profit on installment sales
b) Prepare the entry to record the gross profit realized during 2012.