Determine the sales revenues under the accrual basis

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Reference no: EM133190200

Question - LLL Incorporated reported the following during the year:

Accounts Receivable, beginning 430,000

Accounts written-off 15,000

Recovery of accounts written off 10,000

Cash Sales 1,250,000

Credit sales 3,590,000

All credit sales were subject to terms 2/10, 2/30. 60% of the customers took advantage o the discount. Of the balance, 20% were collected during the year.

1. Determine the sales revenues under the accrual basis (net sales).

2. Determine the sales revenues under the cash basis (net sales).

Reference no: EM133190200

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