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