LO$\mathrm{.}2$ Selma operates a contractor's supply store. She maintains her books using the

cash method. At the end of $2023,$ her accountant computes her accrual basis income

that is used on her tax return. For $2023,$ Selma had cash receipts of $$1,400,000,$ which

included $$200,000$ collected on accounts receivable from $2022$ sales. It also included

the proceeds of a $$100,000$ bank loan. At the end of $2023,$ she had $$250,000$ in accounts

receivable from customers, all from $2023$ sales.

a$.$ Compute Selma's accrual basis gross revenues for $2023.$

b$.$ Selma paid cash for all of the purchases. The total amount paid for

merchandise in $2023$ was $$1,300,000.$ At the end of $2022,$ she had merchandise

on hand with a cost of $$150,000.$ At the end of $2023,$ the cost of merchandise on

hand was $$300,000.$ Compute Selma's gross income from merchandise sales for