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Max Company had the following transactions during the month of May: Performed $300 of services for customers, $100 was on account with the remainder of
Max Company had the following transactions during the month of May:
- Performed $300 of services for customers, $100 was on account with the remainder of the payment received in cash;
- Purchased $68 of equipment with cash (ignore depreciation expense);
- Paid $120 to suppliers in cash, $40 was to pay outstanding accounts payable (from prior periods) and the rest was for current period (i.e., May) expenses;
- Received $30 from customers for services performed in April.
Assuming Max Company uses the accrual method of accounting, how much net income did Max report during May?
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