Activity 5: Check for Understanding (1 hr) Exercise 1. Installment sales method Mark Co. uses the "installment sales method." Information on Mark Co.'s sales and collections is provided to its auditor. 2019 2020 Installment sales 1,000,000 1,300,000 Cost of sales 700,000 845,000 Collections - From 2019 sales 500,000 300,000 - From 2020 sales 650,000 Requirements: As an auditor, a. Compute for the realized gross profit in each of the years 2019 and 2020. b. Compute for the balance of the installment receivable at the end of each of the years 2019 and 2020. c. Compute for the deferred gross profit at the end of each of the years 2019 and 2020