On April 1, 2022, the Olympic Company sold a large piece of machinery to the Peachland Construction Company for $80,000. The cost of the machine was $40,000. Peachland made a down payment of $10,000 and agreed to pay the remaining balance in seven equal monthly installments of $10,000, plus interest at 12% on the unpaid balance, beginning May 1.

Required: You are an accounting analyst at Olympic Company. In a professional email to your supervisor, answer the following:

1. Identify three alternative methods for recognizing revenue and costs for the situation described and compute the amount of gross profit that would be recognized in 2022 using each method.