FIllmore Company began operations on Sept. 1 by purchasing $6000 of inventory and $600 of cleaning supplies. During the month,

FIllmore Company began operations on Sept. 1 by purchasing $6000 of inventory and $600 of cleaning supplies. During the month, the company generated $7500 of sales revenue. On Sept. 30, the company had $2100 of inventory remaining, along with $400 of cleaning supplies. What was FIllmore Company's gross profit for the month of September

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  1. $3,600

    Explanation:

    For the computation of gross profit first, we need to determine the cost of goods sold which is shown below:-

    Cost of goods sold = Purchases - Ending inventory

    = $6,000 - $2,100

    = $3,900

    Gross profit = Sales - Cost of goods sold

    = $7,500 - $3,900

    = $3,600

    Therefore for computing the FIllmore Company's gross profit for the month of September we simply applied the above formula.

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