In 2007 the Huxley Company, a real estate company, purchased some raw land for $60,000 and resold it on credit for $90,000. Because of the speculative nature of the usefulness of the land, the company used the cost recovery method for the sale of the land. The cash collections in 2007, 2008, and 2009 were $25,000, $45,000, and $20,000, respectively.
Required
Prepare the journal entries for each year.