((TCO A) Adam's Adorable Creations Company provided the following financial information for its installment sales for the current year.

Financial Data:

Installment sales for current year$2,500,000Cost of goods sold on installment basis$2,000,000Repossessed merchandise: Estimated value$32,000Repossessed merchandise: Unpaid balances$45,000Payments by customers$1,600,000

Required:

1. Prepare journal entries for the end of the year based on the information above.
2. Prepare the entry to record the gross profit realized in the current year.