Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2013 and 2014:
|
2013 |
2014 |
| Installment sales |
$ |
360,000 |
|
$ |
350,000 |
|
| Cost of installment sales |
|
234,000 |
|
|
245,000 |
|
| Cash collections on installment sales during: |
|
|
|
|
|
|
| 2013 |
|
150,000 |
|
|
100,000 |
|
| 2014 |
|
- |
|
|
120,000 |
|
|
Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system.