MC Qu. 219 Lake Power Sports sells jet skis and other p… 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 installment sales method for revenue recognition. In 2015, Lake began operations and sold jet skis with a total price of $900,000 that cost Lake $450,000. Lake collected $300,000 in 2015, $300,000 in 2016, and $300,000 in 2017 associated with those sales. In 2016, Lake sold jet skis with a total price of $1,500,000 that cost Lake $900,000, Lake collected $500,000 in 2016, $400,000 in 2017, and $400,000 In 2018 assoclated wlth those sales. In 2018, Lake also repossessed $200,000 of Jet skis that were sold In 2016. Those Jet skls had a falr value of $75,000 at the tlme they were repossessed. In 2017, Lake would recognize realized gross profit of O so $%0. $450.000. $310.000 O$700,000