Entity Co. uses the cash basis of accounting and reported income of P85,000 in 20x1. The following items were considered in the computation of the cash basis net income. Inventory, beginning Inventory, ending Receivables, beginning Receivables, ending Payables, beginning Payables, ending 12,000 18,000 40,000 38,000 19,000 25,000 The accrual basis income is
Entity Co. uses the cash basis of accounting and reported income of P85,000 in 20x1. The following items were considered in the computation of the cash basis net income. Inventory, beginning Inventory, ending Receivables, beginning Receivables, ending Payables, beginning Payables, ending 12,000 18,000 40,000 38,000 19,000 25,000 The accrual basis income is
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 21E
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Question
![Entity Co. uses the cash basis of accounting and reported income of P85,000 in 20x1. The following items
were considered in the computation of the cash basis net income.
Inventory, beginning
Inventory, ending
Receivables, beginning
Receivables, ending
Payables, beginning
Payables, ending
12,000
18,000
40,000
38,000
19,000
25,000
The accrual basis income is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa86b99cf-1118-490a-ad0f-cc1f9eeec26b%2F07efd9a9-3b7f-4be5-bb8a-9d678f864094%2Fmrmrgr6_processed.png&w=3840&q=75)
Transcribed Image Text:Entity Co. uses the cash basis of accounting and reported income of P85,000 in 20x1. The following items
were considered in the computation of the cash basis net income.
Inventory, beginning
Inventory, ending
Receivables, beginning
Receivables, ending
Payables, beginning
Payables, ending
12,000
18,000
40,000
38,000
19,000
25,000
The accrual basis income is
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