Brad operates a hardware store. He maintains the books using the cash method. At the end of the year, his accountant computes his accrual basis income that is used on his tax return.For 2018, Brad had cash receipts of $2,200,000, which included $750,000 collected on accounts receivable from 2017 sales. At the end of 2018, he had $910,000 in accounts receivable from customers, all from 2018 sales. Brad paid cash for all of the purchases. The total amount he paid for merchandise in 2018 was $1,100,000. At the end of 2017, he had merchandise on hand with a cost of $165,000. At the end of 2018, the cost of merchandise on hand was $140,000.Brad's accrual basis gross receipts for 2018 are $.The cost of goods sold for 2018 under the accrual method is $.The gross profit from merchandise sales for 2018 under the accrual basis is $.
Brad operates a hardware store. He maintains the books using the cash method. At the end of the year, his accountant computes his accrual basis income that is used on his tax return.
For 2018, Brad had cash receipts of $2,200,000, which included $750,000 collected on
Brad's accrual basis gross receipts for 2018 are $.
The cost of goods sold for 2018 under the accrual method is $.
The gross profit from merchandise sales for 2018 under the accrual basis is $.
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