Ajax Company appropriately accounts for certain sales using the installment sales method. The perpetual inventory system is used. Information related to installment sales for 2018 and 2019 is as follows: 2019 $400,000 280,000 Sales $300,000 180,000 Customer collections on: 2018 sales 2019 sales 20,000 100,000 50,000 Required: 1. Calculate the amount of gross profit that would be recognized each year from installment sales 2. Prepare all necessary journal entries for each year. 3. Repeat requirements 1 and 2 assuming that Ajax uses the cost recovery method to account for its installment sales