Question: What's the journal entry for the year 2011? PROBLEM 1: Diana's Furniture sells furniture and electronic items. The majority of its business is on credit

PROBLEM 1: Diana's Furniture sells furniture and electronic items. The majority of

What's the journal entry for the year 2011?

PROBLEM 1: Diana's Furniture sells furniture and electronic items. The majority of its business is on credit and the following information is available relating to sales transactions for 2011, 2012, and 2013: Particulars Installment sales (net of interest) Gross profit rates Cash collections on installment sales: 2011 2012 2013 P104,000 P116,000 P121,000 39% 38% 41% Principal 2011 Principal 2012 Principal - 2013 Interest 2011 57,200 29,120 71,920 15,000 26,680 76,230 3,030 18,142 6,378 17,870 6,610 Interest 2012 9,780 Interest 2013 Required: Prepare journal entries for the year 2011, 2012, and 2013 assuming Diana's Furniture uses the installment method for revenue recognition and records receivables net of interest.

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