A customer's Accounts Receivable balance is $30,000 and the gross profit percentage is 20% on sales. The customer defaults and the merchandise, having a fair market value of $27,000, is repossessed.
(1) What is the balance of the Deferred Gross Profit account?
(2) Show what the Accounts Receivable and Deferred Gross Profit accounts look like.
(3) Prepare the entry for the repossession.