Claire Company which began operations on January 1, 2019 has elected to use cash basis accounting for tax purposes and accrual accounting for its financial statements. Claire reported sales of P 6,000,000 and P 5,000,000 in its tax return for years 2020 and 2019 respectively. Claire reported accounts receivable of P 1,500,000 and P 500,000 in its balance sheets as of December 31, 2020 and 2019 respectively. What amount should Claire report as sales in its income statement for 2020? a. 4,000,000 b. 5,000,000 c. 7,000,000 d. 6,000,000

Claire Company which began operations on January 1, 2019 has elected to use cash basis accounting for tax purposes and accrual accounting for its financial statements. Claire reported sales of P 6,000,000 and P 5,000,000 in its tax return for years 2020 and 2019 respectively. Claire reported accounts receivable of P 1,500,000 and P 500,000 in its balance sheets as of December 31, 2020 and 2019 respectively. What amount should Claire report as sales in its income statement for 2020? a. 4,000,000 b. 5,000,000 c. 7,000,000 d. 6,000,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 22CE

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