Octagon Co. appropriately uses the installment sales method of accounting for its installment sales. During 2013, Octagon made installment sales of $400,000 and received payments of $250,000 on those sales. Octagon's gross profit margin is 40%.
Required: Prepare journal entries to record the sale, collection, and recognition of gross profit.

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The Answer of Octagon Co. appropriately uses the installment sales method of accounting for its installment sales. During 2013, Octagon made installment sales of $400,000 and received payments of $250,000 on those sales. Octagon's gross profit margin is 40%.
Required: Prepare journal entries to record the sale, collection, and recognition of gross profit.