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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

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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 sales in 2020. Lake began operations and sold jet skis with a total price of $1080.000 that cost Lake $540,000, Lake collected $360,000 in 2020, $360,000 in 2021 and $360,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $2.070,000 that cost Lake S1242.000 Lake collected $690.000 in 2021, 5552.000 in 2022 and $552.000 in 2023 associated with those sales in 2023, Lake also repossessed $276.000 of jet skis that were sold in 2021. Those jet skis had a fair value of $103.500 at the time they were repossessed In 2022 Lake would recognize realized gross profit of 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 sales in 2020. Lake began operations and sold jet skis with a total price of $1080.000 that cost Lake $540,000, Lake collected $360,000 in 2020, $360,000 in 2021 and $360,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $2.070,000 that cost Lake S1242.000 Lake collected $690.000 in 2021, 5552.000 in 2022 and $552.000 in 2023 associated with those sales in 2023, Lake also repossessed $276.000 of jet skis that were sold in 2021. Those jet skis had a fair value of $103.500 at the time they were repossessed In 2022 Lake would recognize realized gross profit of

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