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in this video were gonna talk about the cost recovery method which is a means of recognizing revenue when theres considerable uncertainty similar to what we talked about with the installment sales method but were just gonna calculate things a little bit different than the installment sales method so with the cost recovery method were not gonna recognize any profit until the amount of cash that weve collected exceeds the cost of the item that we sold so if we saw if it cost us $10 for that piece of inventory were not gonna recognize any profit until weve collected at least $10 so lets jump into an example lets say that you sell some inventory that costs you to purchase a hundred thousand dollars your your some kind of organization teller or something like that just cost you a hundred thousand dollars and youre going to sell it for a hundred and forty thousand dollars now normally you have profit here of $40,000 so we just take the hundred and forty thousand sales minus the hu
