Installment sales Cost of installment sales Instructions: Cash collections on 2018 sales Cash collections on 2017 sales 2017 $160,000 Foothills Pie and Cake Co. began operations on January 1, 2017 and uses the installment method of accounting because collection of accounts is over an extended period of time and they are not sure when they will actually collect the cash for the sales. The following information is for 2017 and 2018. 2018 120,000 $200,000 100,000 130,000 60,000 2. Journalize the transactions for 2018 1. compute the gross profit for 2017 and 2018 140,000 F Sales 2017 160,000 2018 209000 COGS 20,000 139000 - C7P 40,000 70,000 9 2500 .35 or 35%-otsales 25%. 3. A sale from 2017 resulted in default in 2017. At the date of the default, the balance of the installment receivable was $4,000 and the repossessed merchandise had a fair value of $2,000. Prepare the entry to record the repossession. 4. What is IFRS (International Financial Reporting Standards) recommending in place of the CICA recommended installment sales method? cash basis