Ajax Company appropriately accounts for certain sales using the installment sales method. The perpetual inventory system is used. Information related to installment sales for 2013 and 2014 is as follows:

	2013			2014
Sales	$	280,000		$	380,000
Cost of sales		168,000			266,000
Customer collections on:
2013 sales		110,000			90,000
2014 sales					140,000

Required:

1.	Calculate the amount of gross profit that would be recognized each year from installment sales.

2.1

Prepare all necessary journal entries for the year 2013. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

2.2

Prepare all necessary journal entries for the year 2014. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field

3.1 (image) Assume that Ajax uses the cost recovery method to account for its installment sales.

3.2	Prepare all necessary journal entries for the year 2013. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

3.3	Prepare all necessary journal entries for the year 2014. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

Ajax Company appropriately accounts for certain sales using the installment sales method. The perpetual inventory system is used. Information related to installment sales for 2013 and 2014 is as follows:Calculate the amount of gross profit that would be recognized each year from installment sales. 2.1 Prepare all necessary journal entries for the year 2013. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)