Potter's Home Goods sells furniture and electronic items. The majority of its business is on credit, and
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Prepare the journal entries for the years 2012-2014 assuming Potter's uses the installment sales method for revenue recognition and records receivables net of interest.
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2012 2013 2014 $1 24,000 $138,000 $145,000 Installment sales (net of interest) Gross profit percentage Cash collections on installment sales: . ._ . .. $38,200 18,500 33,700 73,450 65,400 7,100 12,400 Interest 2013 6,150 15,600 Interest-2014 6,400
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2012 2013 2014 Installment AR2012 124000 Installment AR2013 138000 Installment AR...View the full answer
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