[This is a variation of Exercise 5-3 focusing on journal entries.] Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2013 and 2014:

Required:
Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventorysystem.

Transcribed Image Text:

Installment sales Cost of installment sales Cash collections on installment sales during: 2013 $360,000 234,000 150,000 2014 $350,000 245,000 2013 2014 100,000 120,000