The following is information for A Company's first year of operations:

Payment for merchandise purchases $315,000

Ending merchandise inventory 135,000

Accounts payable (balance at end of year) 60,000

Collections from customers 280,000

The balance in accounts payable relates only to merchandise inventory purchases. All merchandise items were marked to sell at 40% above cost.

Ending A/R = $71,000

Show how you can convert revenue in cash basis to revenue in accrual basis using the information above. Use an equation and label all your answers.