Multiple Choice
In 2013, Amana sold 10 refrigerators that cost $825 each, for a price of $1 285 each. Payments are made in 10 equal instalments, with no down payment. During 2014, Amana collected $10 285 on the 2013 sales. Using the instalment method and assuming an interest rate of 10%, how much gross profit will Amana recognise in 2014?
A) $129
B) $460
C) $790
D) None; it is all recognised in 2013.
Correct Answer:
Verified
Correct Answer:
Verified
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