Question: A seller is using the cost - recovery method for a sale. Interest will be earned on the future payments. Which of the following statements

A seller is using the cost-recovery method for a sale. Interest will be earned on the future payments. Which of the following statements is not correct?
Option A
Interest revenue may be recognized before all costs have been recovered.
Option B
After all costs have been recovered, any additional cash collections are included in income.
Option C
The deferred gross profit is offset against the related receivable on the balance sheet.
Option D
Subsequent income statements report the gross profit as a separate item of revenue when it is recognized as earned.

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