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Husson g , I n c ., a pp r o p r i a t e l y us e s t h e
Hussong, Inc., appropriately uses the installment sales method of revenue recognition. The company sold $1,500,000 on installment accounts during 2014. The cost of items sold was $900,000. At December 31, 2014, Hussong reported a balance of $100,000 in the Deferred Gross Profit account. How much cash did Hussong collect on installment contracts during 2014?
| a. | $600,000 |
| b. | $500,000 |
| c. | $250,000 |
| d. | $1,250,000 |
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