Grover, Inc., appropriately uses the installment sales method of revenue recognition. The company sold $1,500,000 on installment accounts during 2011. The cost of items sold was $900,000. At December 31, 2011, Grover reported a balance of $100,000 in the Deferred Gross Profit account. How much cash did Grover collect on installment contracts during 2011?
A) $600,000
B) $500,000
C) $250,000
D) $1,250,000

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The Answer of Grover, Inc., appropriately uses the installment sales method of revenue recognition. The company sold $1,500,000 on installment accounts during 2011. The cost of items sold was $900,000. At December 31, 2011, Grover reported a balance of $100,000 in the Deferred Gross Profit account. How much cash did Grover collect on installment contracts during 2011?
A) $600,000
B) $500,000
C) $250,000
D) $1,250,000