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Question - LLL Incorporated reported the following during the year:
Accounts Receivable, beginning 430,000
Accounts written-off 15,000
Recovery of accounts written off 10,000
Cash Sales 1,250,000
Credit sales 3,590,000
All credit sales were subject to terms 2/10, 2/30. 60% of the customers took advantage o the discount. Of the balance, 20% were collected during the year.
1. Determine the sales revenues under the accrual basis (net sales).
2. Determine the sales revenues under the cash basis (net sales).
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