Since there is no reasonable basis for estimating the degree of collectibility, Astor Co. uses the installment method of revenue recognition for the following sales:

2010 2009 Sales $900,000 $600,000 Collections from:

2009 sales 2010 sales 100,000 300,000 200,000

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Accounts written off:

2009 sales 2010 sales 150,000 50,000 50,000

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Gross profit percentage 40% 30%

What amount should Astor report as deferred gross profit in its December 31, 2010 balance sheet for the 2009 and 2010 sales?

a. $150,000

b. $160,000

c. $225,000

d. $250,000