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 $400,000 $390,000 Cost of installment sales 300,000 312,000 Cash collections on installment sales during: 2016 120,000 110,000 2017 110,000 Required: 1. How much gross profit should Charter recognize in 2016 and 2017 fro installment sales? Answer is complete but not entirely correct. 2016 2017 Gross profit $ 31,250 $ 49,500 Required: 1. How much gross profit should Charter recognize in 2016 and 2017 from installment sales? Answer is complete but not entirely correct. 2016 2017 Gross profit $ 31,250 $ 49,500 2. What should be the balance in the deferred gross profit account a e end of 2016 and 2017? Answer is complete but not entirely correct. 2016 2017 Balance in deferred gross profit account S 268,750 $ 219,250