Thompson Industries Thompson Industries Is a Real Estate Developer That Sells Plots

Essay

Thompson Industries
Thompson Industries is a real estate developer that sells plots of land. On January 1 of the current year, the company sold a plot of land for $1,200,000. The land cost Thompson $780,000. Terms of the sale required a down payment of $300,000 and installments of $300,000 on January 1 of the next three years.
-Refer to Thompson Industries. Assume that Thompson Industries uses the installment sales approach. Prepare all journal entries related to the sale of land, the collection of cash, and the recognition of gross profit.