73. Black Company which began operations on January 1, 2018, has elected to use cash basis accounting for tax purposes and accrual basis accounting for the financial statements. The entity reported sales of P1,750,000 and P800,000 in the tax returns for the years ended December 31, 2019 and 2018,respectively. The entity reported accounts receivable of P300,000 and P500,000 in the statement of financial position on December 31, 2019 ad 2018. respectively. What amount should be reported as aisles in the income statement for the year ended December 31, 2019? а. 1,450,000 b. 1,550,000 c. 1,950,000 d. 2,050,000
73. Black Company which began operations on January 1, 2018, has elected to use cash basis accounting for tax purposes and accrual basis accounting for the financial statements. The entity reported sales of P1,750,000 and P800,000 in the tax returns for the years ended December 31, 2019 and 2018,respectively. The entity reported accounts receivable of P300,000 and P500,000 in the statement of financial position on December 31, 2019 ad 2018. respectively. What amount should be reported as aisles in the income statement for the year ended December 31, 2019? а. 1,450,000 b. 1,550,000 c. 1,950,000 d. 2,050,000
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 31CE
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Transcribed Image Text:73. Black Company which began operations on January 1, 2018, has elected to use cash basis accounting
for tax purposes and accrual basis accounting for the financial statements.
The entity reported sales of P1,750,000 and P800,000 in the tax returns for the years ended December
31, 2019 and 2018,respectively.
The entity reported accounts receivable of P300,000 and P500,000 in the statement of financial position
on December 31, 2019 ad 2018. respectively.
What amount should be reported as aisles in the income statement for the year ended December 31,
2019?
a. 1,450,000
b. 1,550,000
c. 1,950,000
d. 2,050,000
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