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 sales Ac€?o0Ac€?o 216,000
Instructions (a) Compute the amount of realized gross profit recognized in each year. (b) Prepare all journal entries required in 2015