$2)$ Ladel Development Company uses the installment sales method to account for some of its installment sales. On October $1,$ year $1,$ Ladel sold a parcel of land to the Zumba Corporation for $\backslash (\backslash$$ $4\mathrm{.}5\backslash )$ million. This amount was not considered significant relative to Ladel's other sales during year $1.$ The land had cost Ladel $\backslash (\backslash$$ $2\mathrm{.}295\backslash )$ million to acquire and develop. Terms of the sale required a down payment of $\backslash (\backslash$$ $900,000\backslash )$ and four annual payments of $\backslash (\backslash$$ $900,000\backslash )$ plus interest at an appropriate interest rate, with payments due on each October $1$ beginning in year $2.$ Zumba paid the down payment, but on October $1,$ year $2,$ defaulted on the remainder of the contract. Ladel repossessed the land. On the date of repossession the land had a fair value of $\backslash (\backslash$$ $1\mathrm{.}795\backslash )$ million.

Required:

Prepare the necessary entries for Ladel to record the sale, receipt of the down payment, and the default and repossession applying the installment sales method. Ignore interest charges.