<u>Solution and Explanation:</u>
Installment Receivables (Net) of $2,905,600
Basis  Particulars                                         Debit  Credit
Sale:-  Instalment Receivables  $5,000,000  
          Inventory                                               $3,200,000
  Deferred gross profit                                                  $1,800,000
Payment:-  Cash                         $4,90,000  
 Instalment Receivables                                     $4,90,000
 Deferred Gross profit                 $165,600  
 Realised Gross profit                                              $165,600
Instalment Receivables ($5,000,000 minus $490,000) = $4,510,000
Deferred gross profit ($1,800,000 minus $165,600) = $1,634,400
Instalment Receivables (Net) = $2,875,600