INSTALLMENT METHOD 1. Drake and Zyon Company had the following information in the first two years of its operations: 2018 2019 $500,000 $600,000 390,000 430,000 100,000 150,000 75,000 105,000 25% 30% Total Sales Total cost of goods sold Installment Method Sales* Installment method cost of goods sold* Gross Profit rate on installment method sales Cash receipts on installment method sales: 2018 Sales 2019 Sales Cash receipts on other credit sales *Note: Included in total credit sales and total cost of goods sold, respectively. $20,000 30,000 40,000 $300,000 480,000 Drake and Zyon company records the total sales and cost of goods sold for the year in the normal manner. In other words, it does not separate the sales recognized under the installment method. In 2018, of the total cash collections, $20,000 is for installment sales and $300,000 is for other credit sales. Similarly, the bifurcation of the cash collected in 2018 is shown in the table. Required: Required: 2. Make necessary entries using the data provided above