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25 February, 22:28

Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year? a. $110,000b. $100,000c. $90,000d. $75,000

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  1. 26 February, 00:50
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    b. $100,000

    Explanation:

    Provided information

    Beginning balance of account receivable = $25,000

    Collection from customers = $100,000

    Ending balance of account receivable = $15,000

    Since we have to find out the gross taxable income, so we considered only the collection from customers as this is the amount which is received and therefore, it has come under the gross taxable income i. e $100,000.
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Home » Business » Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the year, accounts receivable were $15,000.
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