Accrual and cash


Accrual and cash accounting.

  • The restaurant generated $55,000 in revenue, but only received $40,000.
  • Cost of food sold was $26,000, but only 70% was paid to the supplier.

How would I document accrual accounting for person number one and cash accounting for person number two?

 

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Accounting Basics: Accrual and cash
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