The following summarized information relates to the installment-sales activity of Phillips Stores, Inc. for the year 2012.

Installment sales during 2012                                $500,000
Cost of goods sold on installment basis                   350,000
Collections from customers                                      180,000
Unpaid balances on merchandise repossessed          24,000
Estimated value of merchandise repossessed             11,200

Instructions
 (a) Prepare journal entries at the end of 2012 to record on the books of Phillips Stores, Inc. the summarized data above.
  (b) Prepare the entry to record the gross profit realized during 2012.