Schneider Company uses installment sales method. Below is a summary of its sales, cost of goods sold, and gross profit for three years.
Description201320142015
Installment sales$250,000$260,000$280,000
Cost of goods sold155,000163,800182,000
Gross profit95,00096,20098,000
Schneider Company's collections from customers are duplicated below:
Description201320142015
2013 installment sales $75,000 $100,000 $50,000
2014 installment sales100,000 120,000
2014 installment sales100,000
Required
Assume Schneider uses installment sales method of accounting
a.Compute the gross profit for 2013, 2014, and 2015.
b.Prepare journal entries for 2015.