Question - Gordeeva Corporation began selling goods on the installment basis on January 1, 2010. During 2010, Gordeeva had installment sales of $179,000; cash collections of $77,300; cost of installment sales of $121,720.
Prepare the company's entries to record
(1) installment sales,
(2) cash collected,
(3) cost of installment sales,
(4) deferral of gross profit, and
(5) gross profit recognized, using the installment-sales method