Cockpit Company sells its goods on installment basis under periodic inventory system. For all installment sales, the company adds deferred interest and carrying charges which amounted to 10% of selling price. On January 1, 2021, Cockpit Company's general ledger included the following account balances: Inventory Installment Contract Receivable-2020 Debit $ 90,000 445,500 Credit Installment Contract Receivable-2019 96,525 Deferred Interest and Carrying Charges 2012 Installment Sales ? ? 121,500 28,080 2011 Installment Sales Deferred Gross Profit 2020 Installment Sales Deferred Gross Profit 2019 Installment Sales During the year 2021, the following transactions occurred: 1. The company made installment sales $520,000 (excluding interest and carrying charges of 10%) and its gross profit was 25%. 2. Cash collections including interest and carrying charges amounted to 10% of selling price on installment contract receivable during the year 2021 are: Installment Contract Receivable 2021 Installment Contract Receivable 2020 Deferred interest and carrying charges $24,000 28,550 Installment Contract Receivable 2019 5,600