A Company Using the Cash Basis of Accounting Reports Net

question 283

Essay

A company using the cash basis of accounting reports net income for 2014 of $45,460. If the company had used the accrual basis of accounting it would have reported the following year-end balances: Instructions:
Determine the company's net income under the accrual basis of accounting. Show your calculations. Use the column headings shown below.

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Definitions:

Goods In Transit

Merchandise or inventory items that have been shipped by a seller but not yet received by the buyer, often considered in inventory counts.