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Use the following information to answer the following 4 questions: Assume that Sarah had the following balances on September 1: Cash of $100k, Inventory
Use the following information to answer the following 4 questions: Assume that Sarah had the following balances on September 1": Cash of $100k, Inventory of $100k, and Common Stock of $200k. Assume all other accounts had $0 balances on September 1". During September, Sarah received a $10k payment in advance from a customer for 10 bicycles to be delivered later in the month (sales price is $1k per bike). The bicycles had been previously purchased by Sarah from her supplier at $500 per bicycle. During the last week of September, Sarah delivered four of the bicycles and plans to deliver the remaining six bicycles during October. 5. How much revenue did Sarah earn during the month September? 6. What was the balance of Inventory on September 30? 7. What amount of expenses were incurred during September? 8. What is the balance of the Unearned Revenue account at the end of September?
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