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 cost-recovery method. Prepare all journal entries related to the sale of land, the collection of cash, and the recognition of gross profit.