On July 1, 2016, the Foster Company sold inventory to the Slate Corporation for $450,000. Terms of the sale called for a down payment of $112,500 and three annual installments of $112,500 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 $166,500. The company uses the perpetual inventory system. 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 X: 1 Record the installment sale of $450,000 using the installment sales method when the inventory had a cost of $166,500. lethod 2 Record the cash collection of $112,500 using the installment sales method. 3 Record the 2016 recognized gross profit using the installment sales method. Credit 4 Record the cash collection of $112,500 using the installment sales method. 5 Record the 2017 recognized gross profit using the installment sales method. Note: = journal entry has been entered Clear envy View general journal