Big Buy Appliances sells Mike and Katy a refrigerator for $1,200 in March. Big Buy paid $500 for the refrigerator in Feburary. Big Buy received a 900 payment from Mike and Katy in March and will receive an additional 300 in April.

If Big Buy uses the Accrual Basis of Accounting then the gross profit rate for the month of March would be

500

800

900

700

other