Lake Power Sports sells jet skis and other powered recreational equipment Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sles. In 2020, Lake began operaticris and solo jet skis with a total price of $900,000 that cost Lake $450,000. Lake collected $300,000 in 2020, $300,000 in 2021, and $300 000 in 2022 associated with those sales in 2021. lake sold jet skis with a total price of $1,500,000 that cost Lake $900,000. Lake collected $500,000 in 2021 $400,000 in 2022, and $400.000 in 2023 associated with those sales in 2023 Lake also repossessed $200,000 of jet skis that were sold 2021 Those jet skis had a fair value of $75,000 at the time they were repossessed In Its December 31, 2021, balance sheet, Lake would reporti Multiple Choice Deferred grass profit of $700,000 Deferred gross profit of $600,000 Installment receivables (net) of $700.000 O Installment rereivables (net) of $400,000