The following summarized information relates to the installment-sales activity of Phillips Stores, Inc. for the year 2014.

Installment sales during 2014		$586,000
Cost of goods sold on installment basis		404,340
Collections from customers		238,000
Unpaid balances on merchandise repossessed		37,300
Estimated value of merchandise repossessed		11,200

(a)		Prepare journal entries at the end of 2014 to record on the books of Phillips Stores, Inc. the summarized data above.
(b)		Prepare the entry to record the gross profit realized during 2014

Answer rating: 100% (QA)

a Prepare journal entry at the end of 2014 Account title and explanation Installment accounts receiv... View the full answer