Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2013 and 2014:
| |
2013 |
2014 |
| Installment sales |
$360,000 |
$350,000 |
| Cost of installment sales |
234,000 |
245,000 |
| Cash collections on installment sales during: |
|
|
| 2013 |
150,000 |
100,000 |
| 2014 |
- |
120,000 |
Required: Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system.