Lowes sells merchandise to customers. Cost of Inventory is 70% of the selling price. Lowes uses a gross method to account for sales discount on early receipt of accounts receivables The terms for all Account Receivables are 2/10, n/30. Merchandise becomes unreturnable after 5 months. In 2021, the beginning Inventory for Lowes was $1,000,000. Lowes' sales transactions during 2021-2022 are as follows: 2021 11/1/2021 11/5/2021 12/31/2021 12/31/2021 2022 3/31/2022 6/1/2022 12/31/2022 Sold customer A on account merchandise for $500,000 Customer A paid half of the AR balance. Established allowance of return. Industry experience Indicates that 20% of annual gross sales will be returned. Established allowance of 30% of the remaining AR balance Sales to Customer A become unreturnable. Customer A went bankrupt and the remaining AR will not be collectible: Established allowance of 30% of the remaining AR balance What is the amount of income from operation for 2021? Multiple Choice $70,000 $100,000 $40,000 $115,000