Installment Sales: The following information pertain to problems #$1$ & #$2$:

A machine was sold to Barbara Hurley for $$10,800,$ including a $30\%$ markup on selling price. Barbara

made a down payment of $20\%,$ four of the remaining $16$ equal payments, and then defaulted on further

payments. The machine was repossessed, at which time the fair value was determined to be $$4,800.$

Problem #$1$

Compute the amount of the Installment Accounts Receivable Balance at the date of default:

Problem #$2$

Prepare the journal entry to record the repossession: