LO 16-1 35. ELS Corporation reported gross receipts for 2017-2019 for scenarios A, B, and C as follows: Year Scenario C Scenario A Scenario B $25,000,000 $24,000,000 2017 $26,500,000 2018 $26,000,000 $26,000,000 $26,000,000 2019. $26,900,000 $28,500,000 $25,500,000 a) Is ELS allowed to use the cash method of accounting in 2020 under Scenario A? b) Is ELS allowed to use the cash method of accounting in 2020 under Scenario B? c) Is ELS allowed to use the cash method of accounting in 2020 under Scenario C?
LO 16-1 35. ELS Corporation reported gross receipts for 2017-2019 for scenarios A, B, and C as follows: Year Scenario C Scenario A Scenario B $25,000,000 $24,000,000 2017 $26,500,000 2018 $26,000,000 $26,000,000 $26,000,000 2019. $26,900,000 $28,500,000 $25,500,000 a) Is ELS allowed to use the cash method of accounting in 2020 under Scenario A? b) Is ELS allowed to use the cash method of accounting in 2020 under Scenario B? c) Is ELS allowed to use the cash method of accounting in 2020 under Scenario C?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:LO 16-1
35. ELS Corporation reported gross receipts for 2017-2019 for scenarios A, B, and C as
follows:
Year
Scenario A
Scenario B
Scenario C
2017
$25,000,000 $24,000,000
$26,500,000
2018
$26,000,000 $26,000,000 $26,000,000
2019 $26,900,000 $28,500,000 $25,500,000
a) Is ELS allowed to use the cash method of accounting in 2020 under Scenario A?
b) Is ELS allowed to use the cash method of accounting in 2020 under Scenario B?
c) Is ELS allowed to use the cash method of accounting in 2020 under Scenario C?
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