Guys… i am confused about financial statement treatment of installment sales and cost recovery method… Lets say in 2008 i sold a good for $1,000 on installment and my cost of good was $800. and i received $400 upfront, with $200 paid every year thereafter… As per installment method, i should realize profit of $80 at the sale. Now how would i report this transaction on income statement and balance sheet for 2008… Somebody pls help…