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A company sold inventory items to customers for $500 on August 11. The customers paid the company $300 for the inventory items on August 11 and promised to pay the remaining $200 within 60 days. The company had purchased these inventory items from its supplier on August 1. The supplier billed the company $350 for these inventory items. The company paid the supplier $100 for these inventory items on August 1 and promised to pay the supplier the remaining $250 within 30 days.

A company sold inventory items to customers for $500 on August 11. The customers paid the company $300 for the inventory items on August 11 and promised to pay the remaining $200 within 60 days. The company had purchased these inventory items from its supplier on August 1. The supplier billed the company $350 for these inventory items. The company paid the supplier $100 for these inventory items on August 1 and promised to pay the supplier the remaining $250 within 30 days.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company sold inventory items to customers for $500 on August 11. The customers paid the company $300 for the inventory items on August 11 and promised to pay the remaining $200 within 60 days. The company had purchased these inventory items from its supplier on August 1. The supplier billed the company $350 for these inventory items. The company paid the supplier $100 for these inventory items on August 1 and promised to pay the supplier the remaining $250 within 30 days. What is the company's gross profit for August 11 based on U.S. GAAP? Group of answer choices $300 $500 $150 $200
Transcribed Image Text:A company sold inventory items to customers for $500 on August 11. The customers paid the company $300 for the inventory items on August 11 and promised to pay the remaining $200 within 60 days. The company had purchased these inventory items from its supplier on August 1. The supplier billed the company $350 for these inventory items. The company paid the supplier $100 for these inventory items on August 1 and promised to pay the supplier the remaining $250 within 30 days. What is the company's gross profit for August 11 based on U.S. GAAP? Group of answer choices $300 $500 $150 $200
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