Problem
Presented below is summarized information for Johnston Co., which sells merchandise on the installment basis.
|
2014
|
2015
|
2016
|
|
Sales (on installment plan)
|
$250,000
|
$260,000
|
$280,000
|
|
Cost of sales
|
155,000
|
163,800
|
182,000
|
|
Gross profit
|
95,000 $
|
96,200 $
|
98,000 $
|
|
Collections from customers on:
|
|
|
|
|
2014 installment sales
|
75,000 $
|
$100,000
|
50,000 $
|
|
2015 installment sales
|
|
100,000
|
120,000
|
|
2016 installment sales
|
|
|
100,000
|
Instructions
Prepare all entries required in 2016, applying the installment-sales method of accounting. (Ignore interest charges.)