Part 2: Income Measurement (12 points) On July 1, 2013, the Foster Company sold inventory to the State Corporation for $400,000. Terms of the sale called for a down payment of $100,000 and three annual installments of $100,000 due on each July 1, beginning July 1, 2014. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Foster $150,000. Prepare the necessary journal entries for 2013 and 2014 using point of delivery revenue recognition. Ignore interest charges. July 1, 2013 Installment receivables 1). 2) 3) Cost of goods sold. 5) 6) July 1, 2013 Installment receivables 1). 2). 3) Cost of goods sold. 4). 5) 6). 7). 8) Installment receivables July 1, 2014 10). 11). Installment receivables. 12) Blank # 1 N Blank #2 Blank # 3 Blank #4 N Blank # 5 Blank # 6 Blank #7 Blank #8 Blank #9 M Blank # 10 Blank # 1 A Blank # 2 Blank # 3 A Blank #4 Blank # 5 Blank # 6 Blank #7 Blank #8 Blank #9 Blank # 10 Blank # 11 Blank # 12 Previous Pare Next Page Page 2 of MacBook Air