Leonetta's Leather Store reported revenue of $375,000 in its cash based income statement for the year ended December 31, 2014. Additional information from the books:
Accounts receivable December 31, 2013 $50,000
Accounts receivable December 31, 2014 75,000
Deposits on custom orders 10,000
What would Leonetta's revenue be under the accrual basis of accounting?
What will be an ideal response?
Answer: $375,000 - $50,000 + $75,000 - $10,000 = $390,000
Business
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