(Installment Sales Entries) The following summarized information relates to the installment sales activity of Phillips Stores, Inc. for the year 2012.
|
Installment sales during 2012 |
$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 |
Instructions
(a) Prepare journal entries at the end of 2012 to record on the books of Phillips Stores, Inc. the summarized data above.
(b) Prepare the entry to record the gross profit realized during 2012.