Question
Problem 2: Curiosity Company Curiosity Company provided the following financial information for its installment-sales for the current year. Financial Data Installment sales for current year
Problem 2:
| Curiosity Company |
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| Curiosity Company provided the following financial information for its installment-sales for the current year. | |||
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| Installment sales for current year | $ 800,000 | |
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| Cost of goods sold on installment basis | $ 600,000 | |
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| Payments by customers | $ 320,000 | |
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| Repossessed merchandise - unpaid balances | $ 52,000 | |
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| Repossessed merchandise - estimated value | $ 26,800 | |
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| a) Prepare journal entries for the end of the year based on the information above. | ||
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| b) Prepare the entry to record the gross profit realized in the current year. | ||
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