Aberdeen Company Sold an Asset for $450,000 During 2014, Its

Essay

Aberdeen Company sold an asset for $450,000 during 2014, its first year of operations. The asset cost Aberdeen $300,000, and the sale was recorded using the cost recovery method. Cash collections were as follows: $100,000 in 2014; $200,000 in 2015; and $150,000 in 2016.
Required:
a.Prepare all journal entries connected with the sale for all three years.
b.Show how the net amount of the accounts receivable would be disclosed on the 2015 balance sheet.