On August 19, 2008, Lewisburg Steel Company sold building materials to Coyne Construction for \($600,000\), collecting \($200,000\) on delivery of the materials. The \($400,000\) balance due plus interest at a market rate on the unpaid balance will be repaid as follows:

The building materials cost Lewisburg Steel \($390,000\). The company uses a perpetual inventory system (that is, cost of the goods is subtracted from inventory when the sale occurs).
Required:
1. Prepare the required journal entries for 2008, 2009, and 2010 using point-of-sale revenue recognition (ignore interest revenue).
2. Repeat requirement 1 using the cost recovery method.
3. Repeat requirement 1 using the installment sales method.

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Payment Date Payment Amount August 19, 2009 $150,000 August 19, 2010 150,000 August 19, 2011 100,000