Yankton Company had sales of $240,000 during 20X0, all on account. Accounts receivable for the year grew

Question:

Yankton Company had sales of $240,000 during 20X0, all on account. for the year grew from $50,000 on January 1 to $110,000 on December 31. Expenses for the year were $170,000, all paid in cash.
1. Compute Yankton’s net income on the cash basis of accounting.
2. Compute Yankton’s net income on the accrual basis of accounting.
3. Which basis gives a better measure of Yankton’s performance for 20X0? Why? 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...