Installment Sales

Potter's Home Godds sells furniture and electronic items. The majority of its business is on credit, and the following information is available relating to sales transactions for 2014, 2015, and 2016.

2014... 2015... 2016...

Installment sales (net of interest)... $124,000 $138,000 $145,000

Gross profit percentage... 36% 39% 38%

Cash collections on installment sales:

Principal-2014... $59,300 $38,200 $18,500

Principal-2015... 65,400 33,700

Principal-2016... 73,450

Interest-2014... 7,100 12,400 1,250

Interest-2015... 6,150 15,600

Interest-2016... 6,400

Instructions: Prepare the journal entries for the years 2014-2016 assuming Potter's uses the installment sales method for revenue recognition and records receivables net of interest.