Taylor Brothers began operations in 2017. The following selected information was extracted from its financial records:

REQUIRED:
a. Compute gross sales (accrual basis) for 2017 and 2018.
b. Calculate the amount of cash paid to suppliers during 2018 for inventory.
c. Compute the balance in the prepaid insurance account as of December 31, 2017, and December 31, 2018.

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2018 2017 $ 25,000 $ 20,000 Sales returns and allowances Cost of goods sold 375,000 250,000 Inventory 130,000 110,000 Accounts receivable 150,000 95,000 Insurance expense 35,000 50,000 Cash collected on sales 350,000 500,000 Accounts payable 115,000 105,000 Cash paid for insurance 90,000 65,000