This is my last question, that is why I grouped them together... Please help!

Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $30,000 was sold for $55,000 in 2020. Collections on this sale were $20,000 in 2020, $15,000 in 2021, and $20,000 in 2022. In its 2021 year-end balance sheet, Reliable would report installment receivables (net) of:

• $0.

• $20,000.

• $4,000.

• $15,000

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 $930,000 that cost Lake $465,000. Lake collected $310,000 in 2020, $310,000 in 2021, and $310,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,350,000 that cost Lake $810,000. Lake collected $450,000 in 2021, $365,000 in 2022, and $365,000 in 2023 associated with those sales. In 2023, Lake also repossessed $170,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $63,750 at the time they were repossessed. In its December 31, 2021, balance sheet, Lake would report:

Multiple Choice

• Deferred gross profit of $675,000.

• Installment receivables (net) of $675,000.

• Installment receivables (net) of $360,000.

• Deferred gross profit of $620,000.

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 $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 in 2021. Those jet skis had a fair value of $75,000 at the time they were repossessed. In 2022, Lake would recognize realized gross profit of:

Multiple Choice

• $0.

• $300,000.

• $310,000.

• $700,000.