Alpha Hardware Sells on the Instalment Plan

Multiple Choice

Alpha Hardware sells on the instalment plan.Sales-related figures for Alpha hardware for 2017 were as follows: sales,$700 000;down payments on the sales,$70 000;collections on instalments $300 000;beginning inventory,$50 000;ending inventory,$40 000;and purchases,$410 000.What is Alpha Hardware's gross profit for 2017 using the instalment method?

A) $370 000
B) $280 000
C) ($50 000)
D) $148 000