Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $31,500 was sold for $57,000 in 2017. Collections on this sale were $21,400 in 2017, $15,100 in 2018, and $20,500 in 2019 In 2019, Reliable would recognize gross profit of Multiple Choice $7000. $20,500 s 0. $ 9,500