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Several of Fox, Inc.’s customers are having cash flow problems. Information pertaining to these customers for the years ended March 31, Year 7 and Year 8 follows:
............................................. 3/31/Yr 7... 3/31/Yr 8
Sales ......................................$10,000.... $15,000
Cost of sales ..............................8,000....... 9,000
Cash collections on Year 7 sale...s 7,000....... 3,000
on Year 8 sales............................ -- ..........12,000
If the cost-recovery method is used, what amount would Fox report as gross profit from sales to these customers for the year ended March 31, Year 8?