Installment Sales Method.Garber, Inc. accounts for all sales of its merchandise on the installment basis. Following is the unadjusted trial balance at 12/31/16:
Instructions
(a) Determine collections during 2016 on Installment A/R for each of the years 2014, 2015, and 2016.
(b) Without prejudice to your answer in Part
(a), assume that total collections on Installment Accounts Receivable during 2016 were $1,060,000; $220,000 from 2014, $300,000 from 2015, and $540,000 from 2016. Prepare all necessary adjusting and closing entries at 12/31/16.

Question

Installment Sales Method.Garber, Inc. accounts for all sales of its merchandise on the installment basis. Following is the unadjusted trial balance at 12/31/16:   
Instructions
(a) Determine collections during 2016 on Installment A/R for each of the years 2014, 2015, and 2016.
(b) Without prejudice to your answer in Part 
(a), assume that total collections on Installment Accounts Receivable during 2016 were $1,060,000; $220,000 from 2014, $300,000 from 2015, and $540,000 from 2016. Prepare all necessary adjusting and closing entries at 12/31/16.

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