On April 1, 2016, the Apex Corporation sold a parcel of underdeveloped land to the Applegate Construction Company for $540,000. The book value of the land on Apexs books was $135,000. Terms of the sale required a down payment of $27,000 and 19 annual payments of $27,000 plus interest at an appropriate interest rate due on each April 1 beginning in 2017. Apex has no significant obligations to perform services after the sale.

Required:
1.	Prepare the necessary entries for Apex to record the sale, receipt of the down payment, and receipt of the first installment assuming that Apex is able to make a reliable estimate of possible uncollectible amounts (that is, profit is recognized upon delivery). Ignore interest charges. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the $540,000 sale of land assuming that profit is recognized on delivery and that the cost of the land is $135,000. Record the $27,000 down payment in 2016 assuming that profit is recognized on delivery. Record the receipt of the first $27,000 installment in 2017 assuming that profit is recognized on delivery.

2.

Prepare the necessary entries for Apex to record the sale, receipt of the down payment, and receipt of the first installment assuming that Apex cannot make a reliable estimate of possible uncollectible amounts and decides to use the installment sales method for profit recognition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the $540,000 sale of land assuming that the installment sales method is used and that the cost of the land is $135,000. Record the $27,000 down payment in 2016 assuming that profit is recognized using the installment sales method. Record the 2016 recognized gross profit assuming that profit is recognized using the installment sales method. Record the $540,000 sale of land assuming that the installment sales method is used and that the cost of the land is $135,000. Record the $27,000 down payment in 2016 assuming that profit is recognized using the installment sales method. Record the 2016 recognized gross profit assuming that profit is recognized using the installment sales method. Record the receipt of the first $27,000 installment in 2017 assuming that profit is recognized using the installment sales method. Record the 2017 recognized gross profit assuming that profit is recognized using the installment sales method.