On July 1, 2016, the Foster Company sold inventory to the Slate Corporation for $280,000. Terms of the sale called for a down payment of $70,000 and three annual installments of $70,000 due on each July 1, beginning July 1, 2017. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Foster $109,200. The company uses the perpetual inventory system. Required: 1. Prepare the necessary journal entries for 2016 and 2017 using point of delivery revenue recognition. Ignore interest charges. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Record the installment sale of $280,000 using the point of delivery method 1 thod Record the $109,200 cost of the installment sale using the point of delivery method 2 Record the cash collection of $70,000 using the point of delivery method 3 Credit Record the cash collection of $70,000 using the point of delivery method. 4 2. Prepare the necessary journal entries for 2016 and 2017, applying the installment sales method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Record the installment sale of $280,000 using the installment sales method when the inventory had a cost of $109,200. 1 ethod Record the cash collection of $70,000 using the installment sales method. 2 Record the 2016 recognized gross profit using the installment sales method. 3 Credit Record the cash collection of $70,000 using the installment sales 4 method. Record the 2017 recognized gross profit using the installment sales method. 5 Note:journal entry has been entered ew general journal 3. Prepare the necessary journal entries for 2016 and 2017, applying the cost recovery method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Record the installment sale of $280,000 using the cost recovery method when the inventory had a cost of $109,200. 1 od when Record the cash collection of $70,000 using the cost recovery method. 2 Record the 2016 recognized gross profit using the cost recovery method. 3 Credit Record the cash collection of $70,000 using the cost recovery method. 4 Record the 2017 recognized gross profit using the installment sales method. 5