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Question - Ocala Company sold items only on the installment plan in 2010 and 2011. Additional information follows:
2010 2011
Sales $108,000 $144,000
Cost of goods sold 88,560 103,680
Cash receipts on installment method sales
2010 sales 36,000 54,000
2011 sales -0- 45,000
Prepare the December 31, 2010 adjusting entry to recognize the gross profit realized on installment sales.
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