Basler Corporation, which began business on January 1, 2012, appropriately uses the installment sales method of accounting. The following data were obtained for the years 2012 and 2013.

Instructions
  (a) Compute the balance in the deferred gross profit accounts on December 31, 2012, and on December  31, 2013.
  (b) A 2012 sale resulted in default in 2014. At the date of default, the balance on the installment receivable was $12,000, and the repossessed merchandise had a fair value of $8,000. Prepare the entry to record the repossession.