Exercise 5-27 Installment sales method (Appendix] 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 $480,000 $470,000 312,000 329,000 Installment sales Cost of installment sales Cash collections on installment sales during: 2016 2017 150,000 110,000 115,000 Required: 1. How much gross profit should Charter recognize in 2016 and 2017 from installment sales? 2016 2017 Gross profit 2. What should be the balance in the deferred gross profit account at the end of 2016 and 2017? 2016 2017 Balance in deferred gross profit account