Installment sales during 2014

$586,000

Cost of goods sold on installment basis

404,340

Collections from customers

238,000

Unpaid balances on merchandise repossessed

37,300

Estimated value of merchandise repossessed

11,200

(a)

Prepare journal entries at the end of 2014 to record on thebooks of Phillips Stores, Inc. the summarized data above.

(b)

Prepare the entry to record the gross profit realized during2014.