Question

Jason Corp. has beginning accounts receivable of $1,000. During the year, Jason sold goods to customers on account for $3,000. During the year, Jason also sold goods to customers for cash in the amount of $500. At the end of the year, the balance in Jason's accounts receivable is $1,200. What is accrual basis sales for the year?

a)$3,300
b)$2,300
c)$3,500
d)$3,000

Answer 1

Jason Corp.'s accrual basis sales are determined by starting with the beginning accounts receivable, adding sales on account, and then subtracting the ending accounts receivable, totalling $2,800. This figure does not match any of the provided options.

Step-by-step explanation:

Jason Corp.'s accrual basis sales for the year can be determined by adding the beginning accounts receivable to the sales on account and then subtracting the ending accounts receivable. The calculation looks like this: ($1,000 beginning accounts receivable + $3,000 sales on account) - $1,200 ending accounts receivable = $2,800.

However, the cash sales do not impact the accounts receivable, so we don't include them in this calculation. Based on the information provided, the correct answer for Jason Corp.'s accrual basis sales is not an option mentioned, as it should be $2,800, which is the actual sales on account recognized, assuming there are no write-offs or discounts.