Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2023, her accountant computes her accrual basis income that is used on her tax return. For 2023, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2022 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2023, she had $250,000 in accounts receivable from customers, all from 2023 sales. Question Content Area a. Compute Selma's accrual basis gross revenues for 2023. $fill in the blank fd1ff2f0c02e01e_1 Question Content Area b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2023 was $1,300,000. At the end of 2022, she had merchandise on hand with a cost of $150,000. At the end of 2023, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2023. The cost of goods sold for 2023 under the accrual method is $fill in the blank 098cacf8bf85fd5_1. Therefore, the gross profit from merchandise sales for 2023 under the accrual basis is $fill in the blank 098cacf8bf85fd5_2.
Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2023, her accountant computes her accrual basis income that is used on her tax return. For 2023, Selma had cash receipts of $1,400,000, which included $200,000 collected on
Question Content Area
a. Compute Selma's accrual basis gross revenues for 2023.
$fill in the blank fd1ff2f0c02e01e_1
Question Content Area
b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2023 was $1,300,000. At the end of 2022, she had merchandise on hand with a cost of $150,000. At the end of 2023, the cost of merchandise on hand was $300,000.
Compute Selma's gross income (profit) from merchandise sales for 2023.
The cost of goods sold for 2023 under the accrual method is $fill in the blank 098cacf8bf85fd5_1. Therefore, the gross profit from merchandise sales for 2023 under the accrual basis is $fill in the blank 098cacf8bf85fd5_2.
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