Curiosity Company Curiosity Company provided the following financial information for its installment-sales for the current year. Financial Data: Installment sales for current year

Curiosity Company

Curiosity Company provided the following financial information for its installment-sales for the current year.

Financial Data:

Installment sales for current year $ 800,000

Cost of Goods Sold on installment basis $ 600,000

Payments by customers $ 320,000

Repossessed Merchandise – Unpaid balances $ 52,000

Repossessed Merchandise – Estimated Value $ 26,800

Required:

a) Prepare journal entries for the end of the year based on the information above.

b) Prepare the entry to record the gross profit realized in the current year.

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Curi
osity
Com
pany
Curiosity Company provided the following financial information for its installment-sales for the
current year.
Financial
Data:
Installment sales for current
year
$
800,000
Cost of Goods Sold on
installment basis
$
600,000
Payments by customers
$
320,000
Repossessed Merchandise –
Unpaid balances
$
52,000
Repossessed Merchandise –
Estimated Value
$
26,800
Required:
a) Prepare journal entries for the end of the year based on the information above.
b) Prepare the entry to record the gross profit realized in the current year.

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