Prepare journal entries to record the sale, cash collections

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Reference no: EM13123144

Big Bear Company deals in distressed properties and makes high risk sales. In 2010, 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 2010, $120,000 in 2011, and $50,000 in 2012.

Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2010, 2011, and 2012.

Reference no: EM13123144

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