Diane Clubb is trying to convert income statement items from an accrual basis to a cash basis.

Question:

Diane Clubb is trying to convert income statement items from an accrual basis to a cash basis. at the beginning of the year totalled $205,000. At the end of the year amounted to $240,000. On the income statement using accrual accounting, sales were $360,000. Amortization Expense is $18,000 on the accrual income statement.
Diane calculates her cash received from customers to be $305,000. Do you accept her calculation? What written recommendations could you suggest to Diane? How would she calculate the amount of cash paid for advertising if Advertising Expense was listed as $6,000 and the Prepaid Advertising account showed a decrease of $400? Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...