On August 19, 2008, Lewisburg Steel Company sold building materials to Coyne Construction for $600,000, collecting $200,000

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Question:

On August 19, 2008, Lewisburg Steel Company sold building materials to Coyne Construction for $600,000, collecting $200,000 on delivery of the materials. The $400,000 balance due plus interest at a market rate on the unpaid balance will be repaid as follows:

Payment Date	Payment Amount
August 19, 2009	$150,000
August 19,2010	150,000
August 19, 2011	100,000

The building materials cost Lewisburg Steel $390,000. The company uses a perpetual inventory system (that is, cost of the goods is subtracted from inventory when the sale occurs).

Required:

1. Prepare the required journal entries for 2008, 2009, and 2010 using point-of-sale revenue recognition (ignore interest revenue).

2. Repeat requirement 1 using the cost recovery method.

3. Repeat requirement 1 using the installment sales method.