On November 15, 2016, LaGrow Developers Sold a Parcel of Land

Multiple Choice

On November 15, 2016, LaGrow Developers sold a parcel of land for $9,000,000. They had originally paid $3,000,000 for the land. The terms of the sale called for a $2,000,000 down payment, and the balance in two equal installments payable on November 15, 2017 and November 15, 2018. Disregard interest charges. LaGrow has a December 31 year-end. Refer to LaGrow Developers. Assuming that LaGrow uses the installment sales method, in its December 31, 2017 balance sheet, the company would report ________. (Do not round intermediary calculations, and round your final answer to the nearest whole dollar.)

A) $3,000,000 net installment accounts receivable
B) $1,166,667 net installment accounts receivable
C) $3,500,000 net installment accounts receivable
D) $7,000,000 net installment accounts receivable