Charter Corporation, which began business in 2016, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales made during 2016 and 2017: 2016 2017 Installment sales $ 560,000 $ 550,000 Cost of installment sales 392,000 467,500 Cash collections on installment sales during: 2016 170,000 125,000 2017 160,000 ________________________________________ Required: 1. How much gross profit should Charter recognize in 2016 and 2017 from installment sales? 2. What should be the balance in the deferred gross profit account at the end of 2016 and 2017?