Compute 2018 cash basis net income Primo Industries collected $226,000 from customers in 2018. Of theamount collected, $113.000 was from services performed in 2017.In addition, Primo performed services worth $156,000 in 2018,which will not be collected until 2019.Primo Industries also paid $182,000 for expenses in 2018. Of theamount paid, $142,000 was for expenses incurred on account in2017. In addition, Primo incurred $153,000 of expenses in 2018,which will not be paid until 2019.Compute 2018 cash-basis net income.

Explanation of Cash-Basis Net Income:Cash-basis net income is the profit or loss calculated based on…

Answered: Primo Industries collected $226,000…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

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Geisel, Inc. reported net sales revenue of $522,000 in 2018 and $628,000 in 2019. The company’s ending net receivables were $112,000 during 2017 and $131,000 during 2018. At December 31, 2019, the company had Accounts Receivable of $144,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,800. The company reported Bad Debt Expense of $9,990 during 2019. Required: Determine the net receivables at December 31, 2019. Calculate the receivables turnover ratio for 2018 and 2019. Calculate the days to collect for 2018 and 2019.
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