Rosel company, which began operations on January 1, 2017, has elected to use cash basis accounting for tax purposes and accrual basis accounting for its financial statements. Rosel reported sales of P3,500,000 and P1,600,000 in its tax returns for the years ended December 31, 2018 and 2017, respectively. Rosel reported accounts receivable of P600,000 and P1,000,000 in its statement of financial position on December 31, 2018 and 2017, respectively. What amount should be reported as sales in the income statement for the year ended December 31, 2018?
Rosel company, which began operations on January 1, 2017, has elected to use cash basis accounting for tax purposes and accrual basis accounting for its financial statements. Rosel reported sales of P3,500,000 and P1,600,000 in its tax returns for the years ended December 31, 2018 and 2017, respectively. Rosel reported accounts receivable of P600,000 and P1,000,000 in its statement of financial position on December 31, 2018 and 2017, respectively. What amount should be reported as sales in the income statement for the year ended December 31, 2018?
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 31CE
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Question
Rosel company, which began operations on January 1, 2017, has elected to use cash
basis accounting for tax purposes and accrual basis accounting for its financial statements. Rosel
reported sales of P3,500,000 and P1,600,000 in its tax returns for the years ended December 31,
2018 and 2017, respectively. Rosel reported
in its
should be reported as sales in the income statement for the year ended December 31, 2018?
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