In Its Accrual-Basis Income Statement for the Year Ended December

question 12

Essay

In its accrual-basis income statement for the year ended December 31,2014,Ralph Company reported revenue of $2,565,000.Additional information was as follows:
$\begin{array}{lr}\text { Accounts receivable 12/31/13 } & \$ 418,500 \\\text { Uncollectible accounts written off during 2014 } & 17,200 \\\text { Accounts receivable 12/31/14 } & 391,700\end{array}$
Required:
Under the cash basis of net income determination,how much should Ralph report as revenue for 2014?

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Definitions:

Price Level

The calculated mean price level for the entire range of economic goods and services.

Nominal GDP

The gross domestic product measured in current prices, without adjusting for inflation.

Money Supply

The overall count of money resources within an economy at a pinpointed moment, incorporating physical currency as well as balances in savings and checking accounts.

Natural Rate of Unemployment

The unemployment rate that arises from all sources except fluctuations in the overall demand for goods and services.