Recording journal entries to record the sale

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Reference no: EM1356394

Octagon Co. appropriately uses the installment sales method of accounting for its installment sales.

During 2006, Octagon made installment sales of $400,000 and received payments of $250,000 on those sales. Octagon's gross profit margin is 40%

Prepare journal entries to record the sale, collection, and recognition of gross profit.

Reference no: EM1356394

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