E18-19B (Installment-Sales Method Calculations, Entries)Mandarin Partners appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2014 and 2015. 2014 2015 In

E18-19B (Installment-Sales Method Calculations, Entries)Mandarin Partners appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2014 and 2015.

                                                          2014                            2015

Installment sales                            $300,000                     $750,000

Cost of installment sales                 255,000                        660,000

Cash collections on 2014 sales        70,000                        201,000

Cash collections on 2015 sa                –0–                         216,000

Instructions

(a) Compute the amount of realized gross profit recognized in each year.

(b) Prepare all journal entries required in 2015.