Cash Basis Accounting Question
A company uses cash basis of accounting. Company collected $850,000 from its customers during 2010. Customers owed Slaughter $50,000 of accounts receivable at the beginning of 2010, and $90,000 of accounts receivable at the end of 2010. What is Slaughter's sales revenue for 2010 under the accrual basis of accounting?
Comment on Just Looking's post
Thank you for the hints... I think it should be:
So 850K + 90K = 940K
Is that correct?
Comment on Just Looking's post
I am getting confused, because 50K was collected in cash basis accounting (present year), but in accrual basis it was reported in prev year...
850,000.00 Cash during 2010
50,000.00 - 90,000.00 = 40k
40k + 850k = 890K
Comment on Just Looking's post
Yes I do. After my 1st response, I started to think... and I had to walk away from my computer. Lol.
I appreciate your help. This is a great site.