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 $.