Saunders Hardware Sells on the Instalment Plan

question 9

Multiple Choice

Saunders Hardware sells on the instalment plan.Sales-related figures for Saunders Hardware for 2017 were as follows: sales,$600 000;down payments on the sales,$60 000;collections on instalments,$250 000;beginning inventory,$90 000;ending inventory $60 000;and purchases,$400 000.What is Saunders Hardware's gross profit using the sales method of income recognition?

• A)$200 000
• B)$170 000
• C)$260 000
• D)$190 000

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Definitions:

Equal Employment Opportunity

A principle that ensures all individuals have the same chance for employment, regardless of race, color, religion, sex, or national origin.

Affirmative Action

Policies and practices aimed at increasing opportunities for historically underrepresented groups in areas such as employment and education.

Managerial Bias

The tendency of managers to make decisions based on subjective preferences and beliefs rather than objective evidence.

HRM Task

Activities or responsibilities carried out by the Human Resources Management department, such as hiring, training, and employee relations.