Question

Coronado Industries reported revenue of $1650000 in its accrual basis income statement for the year ended June 30, 2021. Additional information was as follows: Accounts receivable June 30, 2020 $405000 Accounts receivable June 30, 2021 521000 Uncollectible accounts written off during the fiscal year 16000 Under the cash basis, Coronado should report revenue of

Answer 1

Answer:

$1,518,000

Explanation:

Prepare a Total Accounts Receivable T Account to determine the revenue received in cash, which is the revenue to be reported under the Cash Basis.

Total Accounts Receivable T Account

Debit  :

Beginning Balance                                      $405000

Revenue                                                     $1650000

Total                                                         $2,055,000

Credit :

Cash (Balancing figure)                            $1,518,000

Uncollectible accounts written off               $16000

Ending Balance                                           $521000

Total                                                         $2,055,000