... the portion of each dollar of revenue that is available to cover expenses.1Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Income Measurement and Profitability ... delayed.5-9Installment Sales Method The installment sales method recognizes the gross profit by applying the gross profit percentage on the sale to the amount of cash actually collected.25-4Realization ... 195,000 25,000 2007 200,000COGS 155,000$ 190,000$ 220,000$ Year of CollectionUnder the cost recovery method profit is not recognized until the seller has recovered all of the cost of the goods...