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Question - Company X is located in the commercial sector and has been operating from 1992. The company purchased office supplies from Florida Distributors Co. Ltd on May 12, 2016 that valued US$50,000.00. Company X pays US$20,000.00 by cash on May 31, 2016, US$25,000.00 by cheque on June 2, 2016, and then settled its bill by transferring the balance from its bank account directly into the bank account of the supplier on June 3, 2016.
Record the transactions in the books of Company X using the cash basis?
Record the transactions in the books of Company X using the accrual basis?
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