Company provided the following financial information for its installment-sales for the current year.

Financial Data:

Installment sales for current year ..........................................$800,000

Cost of Goods Sold on installment basis ..............................$600,000

Payments by customers .........................................................$320,000

Repossessed Merchandise - Unpaid balances ........................$52,000

Repossessed Merchandise - Estimated Value .........................$26,800

Required:

a) Prepare journal entries for the end of the year based on the information above.

b) Prepare the entry to record the gross profit realized in the current year.