Knights Furniture sells furniture and electronic items. The majority of its business is on credit, and the

Question:

Knight€™s Furniture sells furniture and electronic items. The majority of its business is on credit, and the following information is available relating to sales transactions for 2007, 2008, and 2009.

Instructions:
Prepare the journal entries for the years 2007€“2009 assuming Knight€™s uses the installment sales method for revenue recognition and records receivables net of interest.