Primo Industries collected $105,000 from customers in 2014. Of the amountcollected, $25.000 was from services performed in 2013. In addition, Primoperformed services worth $40,000 in 2014, which will not be collected until2015.Primo Industries also paid $72,000 for expenses in 2014. Of the amount paid,$30,000 was for expenses incurred on account in 2013. In addition, Primoincurred $42,000 of expenses in 2014, which will not be paid until 2015.a. Compute 2014 cash-basis net income.b. Compute 2014 accrual-basis net income.

Step 1: Introduction to the Basis of Accounting:In preparing the financial statements of the…

Answered: Primo Industries collected $105,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The comparative balance sheet of Sloan company reveal that accounts receivable (before deducting allowance) increased by $15,000 in 2016. During the same period, the allowance for uncollectible accounts increased by $2,100. If sales revenue was $120,000 in 2016nand bad debt expenses were 2% of sales, how much cash was collected from customers during the year? Please show the work.
During 2014, a company wrote off $6,000 in uncollectible accounts receivable. At the end of the year, they estimated bad debt expense using a percent of gross sales. In 2015, the company recovered a $1,000 account that was written off in 2014. The recording of this recovery would include a a. Debit to retained earnings b. Credit to accounts receivable c. Debit to allowance for doubtful accounts d. Credit to prior period adjustments
Sandhill Industries collected $105,000 from customers in 2022. Of the amount collected, $25,700 was for services performed in 2021. In addition, Sandhill performed services worth $38,900 in 2022, which will not be collected until 2023. Sandhill Industries also paid $71,300 for expenses in 2022. Of the amount paid, $29,300 was for expenses incurred on account in 2021. In addition, Sandhill incurred $40.900 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income $ (b) Compute 2022 accrual-basis net income. Accrual-basis net income $ 33.700
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