The Hilton Company sells inexpensive furniture on installment plans to customers that have poor credit.

Many of the company’s customers are sometimes not able to make the required payments, forcing The Hilton Company to repossess the furniture. Assume The Hilton Company sells a bedroom set with a sales price of \($3,000\) that requires 10% down at time of purchase and the remaining balance due in 12 monthly payments. The cost of the bedroom set to The Hilton Company is \($2,000\).

Required
Compute the required revenue and cost of goods sold to be recognized, by month, assuming accounting under either (1) point-of-sale, or (2) an installment basis.