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Iowa Development (ID) made the following land sales and had the following cash collections: 2012 sold...

Iowa Development (ID) made the following land sales and had the following cash collections:

2012 sold Altoona land for 2,000,000 that cost ID $1,200,000. The land agreement required payments of $1,000,000 within one week of occupancy of the land, and the other $1,000,000 in 2013 ID received the $1,000,000 payment.

Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit in 2012 and 2013 using the installment sales method under U.S GAAP(Deferred gross profit method)

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