Laura Flessel Stores sells merchandise on open account as well as on installment terms.

Instructions
From the data above, which cover the 3 years since Laura Flessel Stores commenced operations, determine the net income for each year, applying the installment-sales method ofaccounting.

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Sales on account Installment sales Collections on installment sales 2007 S385,000 320,000 2008 S426,000 275,000 $525,000 380,000 Made in 2007 Made in 2008 Made in 2009 90,000 110,000 40,000 140,000 125,000 110,000 Cost of sales Sold on account Sold on instaliment 270,000 214,400 77,000 50,000 277,000 167,750 87,000 51,000 341,000 224,200 92,000 52,000 7 Selling expenses Administrative expenses