Adorable Creations

TCO A) Adam’s Adorable Creations Company provided the following financial information for its installment sales for the current year.Financial Data: Installment sales for current year $2,400,000 Cost of goods sold on installment basis $1,800,000 Repossessed merchandise: Estimated value $56,000 Repossessed merchandise: Unpaid balances $90,000 Payments by customers $1,750,000 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.

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.