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Business, 01.10.2019 02:10 chrjergre6520
Selma operates a contractor’s supply store. she maintains her books using the cash method. at the end of the year, her accountant computes her accrual basis income that is used on her tax return. for 2019, selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2018 sales. it also included the proceeds of a $100,000 bank loan. at the end of 2019, she had $250,000 in accounts receivable from customers, all from 2019 sales. compute selma’s accrual basis gross receipts for 2019. selma paid cash for all of the purchases. the total amount paid for merchandise in 2019 was $1,300,000. at the end of 2018, she had merchandise on hand with a cost of $150,000. at the end of 2019, the cost of merchandise on hand was $300,000. compute selma’s gross income from merchandise sales for 2019.
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Selma operates a contractor’s supply store. she maintains her books using the cash method. at the en...
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