Apple Company, which began operations on January 1, 2020, has elected to use the cash basis accounting for tax purposes and accrual basis for the financial statements. The entity reported sales of P3,500,000 and P1,600,000 in the tax returns for the years ended December 31, 2021 and 2020 respectively. The entity reported accounts receivable of P300,000 and P500,000 on December 31, 2021 and 2020, respectively. What amount should be reported as sales in the Income Statement for 2021? A. 4,100,000 B. 3,700,000 C. 3,100,000 D. 4,700,000
Apple Company, which began operations on January 1, 2020, has elected to use the cash basis accounting for tax purposes and accrual basis for the financial statements. The entity reported sales of P3,500,000 and P1,600,000 in the tax returns for the years ended December 31, 2021 and 2020 respectively. The entity reported accounts receivable of P300,000 and P500,000 on December 31, 2021 and 2020, respectively. What amount should be reported as sales in the Income Statement for 2021? A. 4,100,000 B. 3,700,000 C. 3,100,000 D. 4,700,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 40P
Related questions
Question
Apple Company, which began operations on January 1, 2020, has elected to use the cash basis accounting for tax purposes and accrual basis for the financial statements.
The entity reported sales of P3,500,000 and P1,600,000 in the tax returns for the years ended December 31, 2021 and 2020 respectively.
The entity reported
What amount should be reported as sales in the Income Statement for 2021?
A. 4,100,000
B. 3,700,000
C. 3,100,000
D. 4,700,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning