Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2013 and 2014:
| 2013 | 2014 | |||||
| Installment sales | $ | 360,000 | $ | 350,000 | ||
| Cost of installment sales | 234,000 | 245,000 | ||||
| Cash collections on installment sales during: | ||||||
| 2013 | 150,000 | 100,000 | ||||
| 2014 | — | 120,000 | ||||
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| Required: |
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Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system. |