Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

10th Edition

324300980, 978-0324300987

More Books

Students also viewed these Accounting questions

Question

How should Jamba Juice compete?

Answered: 1 week ago