Question
Criss Cross is a business carried on as a sole proprietorship. During his 2021 fiscal period, its first year of operations, the business has cash
Criss Cross is a business carried on as a sole proprietorship. During his 2021 fiscal period, its first year of operations, the business has cash sales of $123 000. It also has sales on account of $46000, of which $22000 remains outstanding at the end of the 2021 fiscal period. It is estimated that $4000 of the account receivable will be doubtful of collection. Of the cash received, $9500 represents advances is for merchadise that will only be delivered in the 2022 fiscal period.
What is the business income for the 2021 fiscal period? Show all calculations.
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