Problem 1. ABC Corporation began operations in 2018 and uses the installment method in accounting for its sales. The following data is obtained from the records. 2018 $360,000 $350,000 $270,000 $250,000 2019 Installment sales Cost of installment sales Cash collections on installment sales: 2018 2019 $150,000 $100,000 $120,000 Record all entries in 2018 and 2019 in connection with the 2018 and 2019 installment sales including the recognition of gross profit. DEF enters into a long term construction contract for $4,000,000 that will take 3 years to complete. The cost of the job is estimated to be $3,000,000. Prepare all entries required in each of the 3 years using the % of completion method and following information: Year 1 $900,000 $1,400,000 $700,000 $1,800,000 $700,000 $1,000,000 $1,900,000 $1,100,000 Year 2 Year 3 Costs incurred Estimated costs to complete Progress billings Cash collections $1,000,000 $1,500,000 $1,500,000