K. B. Sayer Furnishings Inc. had the following sales and gross profit percentages for the years 2014-2017.

Historically, 60% of sales are collected in the year of the sale, 25% in the following year, and 10% in the third year. Assuming collections are as projected, give the journal entries for the years 2014-2017, assuming the cost recovery method. (Ignore provision for bad debts.) Prepare a table comparing the gross profit recognized for 2014-2017 using the full accrual method and the cost recovery method.

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Gross Profit Percentage Sales 2014 5596 51 56 5/ 2015 2016 .. 65,000 ...72,000 76,000 2017