SawPro Company, owned and operated by Heather Moore, opened for business in 2015. The company sells a single model of commercial grade chain saws that it purchases from the manufacturer. Heather’s customers, primarily businesses offering landscaping and tree-services, purchase saws on account, with payment typically due within thirty-days.

The following transactions occurred during the calendar year ending December 31, 2018:

Signed a five-year lease for retail space on May 1, 2015. The lease agreement requires cash prepayments of $400 per month, paid twelve months in advance, with the full amount due on May 1 ^st of each year. Heather wrote a check for $4,800 on May 1, 2018.

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