The following summarized information relates to the installment-sales activity of Lisa Jacob Stores Inc. for the year 2008.

Installment sales during 2008 .........$500,000

Cost of goods sold on installment basis ..... 330,000

Collections from customers ........... 200,000

Unpaid balances on merchandise repossessed ... 24,000

Estimated value of merchandise repossessed .... 9,200

Instructions

(a) Prepare journal entries at the end of 2008 to record on the books of Lisa Jacob Stores, Inc. the summarized data above.

(b) Prepare the entry to record the gross profit realized during 2008.