Accounting

P18-8B (Installment-Sales Computations and Entries) Presented below is summarized information for Scribner Co., which sells merchandise on the installment basis.

2014                    2015                                 2016

Sales (on installment plan)        $340,000              $300,000                          $370,000

Cost of sales                                   217,600              198,000                            240,500

Gross profit                                    $122,400           $102,000                          $129,500

Collections from customers on:

2014 installment sales                 $130,000            $120,000                           $ 40,000

2015 installment sales                                                100,000                              110,000

2016 installment sales                                                                                            140,000

Instructions:

A) Compute the realized gross profit for each of the year 2016.  Please check attachment for this answer and make sure correct. 

        B) Prepare in journal form all entries required in 2016, applying the installment-sales method of accounting. (Ignore interest charges.)