Making summary entries using installment-sales method

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Reference no: EM13136310

Sawyer Furniture Company concluded its first year of operations in which it made sales of $800,000, all on installment. Collections during the year from down payments and installments totaled $300,000. Purchases for the year totaled $400,000; the cost of merchandise on hand at the end of the year was $80,000.

Instructions: Using the installment-sales method, make summary entries to record:

a.the installment sales and cash collections

b.the cost of installment sales

c.the unrealized gross profit

d.the realized gross profit.

Reference no: EM13136310

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