The following information is available for the Butler Company in 2007, its first year of operations: Total
Question:
The following information is available for the Butler Company in 2007, its first year of operations:
Total credit sales (including installment method sales) ..........$205,000
Total cost of goods sold (including installment method cost of goods sold) ...130,000
Installment method sales ........................65,000
Installment method cost of goods sold .................39,000
Cash receipts on credit sales (including installment method sales of $20,000) ..120,000
Required
1. Prepare the journal entries for 2007.
2. If the company collected $45,000 in 2008 on its 2007 installment method sales, prepare the appropriate journal entries in 2008.
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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