Iowa Development (ID) made the following sales and had the following activity during each of the years as described below: During 2008 ID sold product for $2,000,000 that cost $1,200,000. The sales required payments of $1,000,000 within one week of delivery and an additional payment of $1,000,000 in 2009. ID received the first $1,000,000 payment on time and in accordance with the agreement. During 2009 ID sold product for $2,400,000 that cost $1,200,000. The sales required payments of $800,000 within one week of delivery and additional payments of $800,000 in 2010 and 2011. ID received the first $800,000 payment on time and in accordance with the agreement. In addition ID received only $500,000 of the second payment for the 2008 sales. Scenario 1 - Assume ID sales meet all revenue recognition criteria on the date of sale. Required: Prepare all journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2008 and 2009. Scenario 2 - Assume ID is not reasonably assured of collection at the time of sale. ID maintains a security interest in the product after sale. As such, ID can repossess and resell the product without incurring any loss. Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2008 and 2009. Required: Calculate and provide the balance sheet amount reported as of December 31, 2008 and December 31, 2009. Scenario 3 - Assume on the date of sale ID is not reasonably sure it will collect payment for the product and the product is normally quickly consumed once purchased. Further assume even if ID could repossess the product it has little resale value shortly after the sale. Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2008 and 2009. Required: Calculate and provide the balance sheet amount reported as of December 31, 2008 and December 31, 2009