1. (TCO A) Adam's Adorable Creations Company Adam's Adorable Creations Company provided the following financial information for its installment-sales for the current year. Financial Data: Installment sales for current year $2,500,000 Cost of goods sold on installment basis $2,000,000 Repossessed merchandise: Estimated value $32,000 Repossessed merchandise: Unpaid balances $45,000 Payments by customers $1,600,000 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.