ABC inc opened its doors on January 1, 2021. The company had sales of $500,000 during the last period. It has a gross profit percentage of 40%.

Additional Information:

1.The company's sales are all on credit. Eight percent of the sales are collected in the period of sale, with the remainder collected in the period following the sale.

2. The company purchased $450,000 worth of inventory. Inventory purchases are all paid for in the period following the sale.

The company's inventory balance at the end of the periodwas $200,000.

TrueFalse

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