K. B. Sayer Furnishings Inc. had the following sales and gross profit percentages for the years 2012-2015.
....................................................Sales................... Gross Profit Percentage
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . .$60,000.......................................... 55%
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . ...65,000.......................................... 51
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,000.......................................... 56
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,000.......................................... 57
Historically, 60% of sales are collected in the year of the sale, 25% in the following year, and 10% in the third year. Assuming collections are as projected, give the journal entries for the years 2012-2015, assuming the cost recovery method. (Ignore provision for bad debts.) Prepare a table comparing the gross profit recognized for 2012-2015 using the full accrual method and the cost recovery method.