Question - Sawyer Furniture Company concluded its first year of operations in which it made sales of $800,000, all on installment. Collections during the year from down payments and installments totaled $300,000. Purchases for the year totaled $400,000; the cost of merchandise on hand at the end of the year was $80,000.
Instructions: Using the installment-sales method, make summary entries to record: (a) the installation sales and cash collections; (b) the cost of installment sales; (c)the unrealized gross profit; (d) the realized gross profit.