Oliver Furnishings frequently has sales involving "no down payment and no payments for three months." Three months after the purchase date, customers make four equal monthly payments (i.e., they make equal payments

3,4,5

, and 6 months after purchase). Each payment is one-quarter of the purchase price.\ The company has a December 31 year-end. During the current year, the company made the following sales on installment plans. Oliver makes a

40%

gross margin on these sales. (Click the icon to view the sales data.)\ Required\ Begin by recording the journal for installment sales made in May. (Record debits first, then credits. Explanations are not required.)\ \\\\table[[Date,Accounts,Debit,Credit],[May,3,,],[,,,],[,,,],[.,,,]]\ Now, prepare a compound entry to show the installment collections and revenue adjustments that will be made on each of the installment dates.\ \\\\table[[Date,Accounts,Debit,Credit],[Aug-Nov],[,,,],[,,,],[,,,],[,,,],[,,,]]

Oliver Furnishings frequently has sales involving "no down payment and no payments for three months." Three months after the purchase date, customers make four equal monthly payments (i.e., they make equal payments 3,4,5, and 6 months after purchase). Each payment is one-quarter of the purchase price. The company has a December 31 year-end. During the current year, the company made the following sales on installment plans. Oliver makes a 40% gross margin on these sales. (Click the icon to view the sales data.)