Company which begins operations on Jan 2, 2015 appropriately uses the installment sales method of accounting. the following information is available for 2015:

Installment accounts receivable, December 31, 2015 $720,000

Deferred gross profit, december 31, 2015 (before recognition of realized gross profit for 2015) $560,000

Gross profit on sales: 35%

Cash collections in 2015 and the 12/31 balance of deferred gross profit are?

A) 680,000 and 272,000

B) 880,000 and 252,000

C) 720,000 and 252,000

D) 880,000 and 272,000

E) 720,000 and 272,000