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Explain why the Installment and Cost-Recovery Methods of accounting for installment sales are not permitted under Generally Accepted Accounting Principles (GAAP) for financial statement purposes.

Explain why the Installment and Cost-Recovery Methods of accounting for installment sales are not permitted under Generally Accepted Accounting Principles (GAAP) for financial statement purposes. For full credit, state any relevant accounting principles violated under these methods (give their complete statement, as I taught you), explain how they are violated under these methods, and show how they are satisfied in the accounting for installment sales under GAAP.

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