Accounts receivable resulting from sales on credit

Assignment Help Financial Accounting

Reference no: EM131286671

During 2016, Bravo Company had credit sales of $40,000 and cash sales of $18,000. In 2016 Bravo collected $21,000 of accounts receivable resulting from sales on credit. Bravo incurred operating expenses of $7,500; of this amount, $2,900 was paid in 2016, and the $4,600 balance represented a liability at year-end. In addition to these operating expenses, Bravo also purchased for cash a three-year insurance policy on January 1, 2016. The cost of this policy was $3,000. What is Bravo's 2016 accrual basis net income?

Reference no: EM131286671

Questions Cloud

Issues that led to the implementation of the program : What were the issues that led to the implementation of the program? Describe the program. How will the implementation of the program resolve the issues mentioned in the first question? If you were the manager of this program, what would identify as t..

Bit bored with generally accepted accounting principles : Larkin Inc, retains Howard Perkins to manage its books and prepare its financial statements. Perkins, a certified public accountant, lives in Indiana and practices there. After twenty years, Perkins has become a bit bored with generally accepted acco..

Iternational aspects of doing business : Select an article published in January 2012 or later that deals with the international aspects of doing business. See the Grades section of the syllabus for the specifics of the format for this summary. You will also find a sample in the course H..

Research and analysis of a current and ongoing situation : This project includes the research and analysis of a current and ongoing situation in the news that involves a single news topic from some aspect of technology, regulatory, legal, political, economic, social, or related factor that may likely affe..

Accounts receivable resulting from sales on credit : During 2016, Bravo Company had credit sales of $40,000 and cash sales of $18,000. In 2016 Bravo collected $21,000 of accounts receivable resulting from sales on credit. Bravo incurred operating expenses of $7,500; of this amount, $2,900 was paid in 2..

The franciscos investment options : The Franciscos' Investment Options- Hector Francisco is a successful businessman in Atlanta. The box-manufacturing firm he and his wife, Judy, founded several years ago has prospered.

Concerned with the total supply chain concept : The supply chain concept looks at both the inputs of a firm and the firms that facilitate the movement of the product from the manufacturer to the consumer. - Do you think marketers should be concerned with the total supply chain concept? Why or wh..

Using the straight-line method : A truck costing $45,000 and having an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000, and a trade-in allowance of $22,500 is received. The old truck has be..

Remaining amount due was paid within the discount period : A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be:

User Account

All Pages