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
Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system.