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 $350,000 $450,000 Cost of sales 245,000 292,500 Customer collections on 2013 sales 145.000 125.000 2014 sales 175.000 Required: 1 Calculate the amount of gross profit that would be recognized each year from installment sales 2014 Gross profit 2013 43.500 5 21 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.) View transaction list Journal entry worksheet Record installment sales Note Enter debits before credito Year 2013 Dobit Credit General Journal Accounts receivable Ravenue View 22 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.) View transaction list Journal entry worksheet