Posted: August 9th, 2016

Prepare journal entries for the end of the year based on the information above.

Curiosity Company

Curiosity Company provided the following financial information for its installment-sales for the current year.

Financial Data:
Installment sales for current year $ 800,000
Cost of Goods Sold on installment basis $ 600,000
Payments by customers $ 320,000

Repossessed Merchandise – Unpaid balances $ 52,000
Repossessed Merchandise – Estimated Value $ 26,800

a) Prepare journal entries for the end of the year based on the information above.

b) Prepare the entry to record the gross profit realized in the current year.