Installment-Sales Entries the following summarized information relates to the installment sales activity of Phillips Stores, Inc. for the year 2010.
Installment sales during 2010 $500,000
Cost of goods sold on installment basis 350,000
Collections from customers 180,000
Unpaid balances on merchandise repossessed 24,000
Estimated value of merchandise repossessed 11,200
(a) Prepare journal entries at the end of 2010 to record on the books of Phillips Stores, Inc. the summarized data above.
(b) Prepare the entry to record the gross profit realized during 2010.