Big Bear Company deals in distressed properties and makes high-risk sales. In 2012, the company sold for $250,000 a piece of property that cost $150,000. The cost recovery method was appropriately used. Collections on the sale were: $80,000 in 2012, $120,000 in 2013, and $50,000 in 2014.
Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2012, 2013, and 2014.

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The Answer of Big Bear Company deals in distressed properties and makes high-risk sales. In 2012, the company sold for $250,000 a piece of property that cost $150,000. The cost recovery method was appropriately used. Collections on the sale were: $80,000 in 2012, $120,000 in 2013, and $50,000 in 2014.
Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2012, 2013, and 2014.

Big Bear Company Deals in Distressed Properties and Makes High-Risk