Financial Reporting, Installment sales, p. 151 method, profit, only, payment, between

jawz

It says that under this method you apportion the cash receipt between cost recovered and profit using the ratio of profit to sales values. Therefore you recognise only a portion of the down payment. This is clear so far.

What happens to the next payment. Do you recognize also only the same portion as for the down payment? If yes, when do you recognise the full profit?

Andreas