Rosel company, which began operations on January 1, 2017, has elected to use cash basis accounting for tax purposes and accrual basis accounting for its financial statements. Rosel reported sales of P3,500,000 and P1,600,000 in its tax returns for the years ended December 31, 2018 and 2017, respectively. Rosel reported accounts receivable of P600,000 and P1,000,000 in its statement of financial position on December 31, 2018 and 2017, respectively. What amount should be reported as sales in the income statement for the year ended December 31, 2018?

Rosel company, which began operations on January 1, 2017, has elected to use cash basis accounting for tax purposes and accrual basis accounting for its financial statements. Rosel reported sales of P3,500,000 and P1,600,000 in its tax returns for the years ended December 31, 2018 and 2017, respectively. Rosel reported accounts receivable of P600,000 and P1,000,000 in its statement of financial position on December 31, 2018 and 2017, respectively. What amount should be reported as sales in the income statement for the year ended December 31, 2018?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 22CE

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