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L 4.REINSTALLMENT SALES:Samsam Co. started installment Sales business on Jan.1, 2014. Following information is obtained from its record:20142015Purchased merchandise on account 5,00,000 6,80,000Sold merchandise on installment basis 10,00,000 12,00,000Collected installments of 2014 sales 3,00,000 2,00,000Collected installments of 2015 sales4,00,000Paid accounts payable4,00,0006,00,000Paid operating expenses75,000 1,00,000Install, contract (2014) cancelled but50.000Merchandise could not be repossessedMerchandise inventory (ending)1,00,000 2,40,000The company uses perpetual inventory system andcloses its accounts on December 31 each year.REQUIRED: Entries for the year 2015 includingadjusting and closing entries. |
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