on january 1, 2003 ABC share company sold a product costing $14000,for $20000 to a customer called Altawari, terms of payment require $2000 down payment and $500 regular payments at the end of each month starting january 31,2003.fter making 16 monthly payments of $500,Altawari defaulted and the company repossessed the item having a net realizable value of $5000 at the time of repossession, August 5, 2004. The company uses the installment method of accounting for thes transaction and its fiscal year ends December 31.
Required:
Determine the amount of realized gross profit in each of the years 2003 and 2004
b) Prepare all journal entries including adjusting and closing needed to to handle transactions of each year