The accrual basis of accounting
On July 1, Gandolfo Inc., a company which uses the the accrual basis of accounting and is on a calendar year for financial reporting, received $13,500 cash in advance for 12 months of service to be performed monthly, beginning on receipt of payment.
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On July 1, Gandolfo Inc., a company which uses the accrual basis of accounting and is on a calendar year for financial reporting, received $13,500 cash in advance for 12 months of service to be performed monthly, beginning on receipt of payment.
Preston acquired 70% of Sanchez in January 2012. In allocating the newly acquired subsidiary's fair valu at the acquisition date, Preston noted that Sanchez had developed a customer list worth $ 65,000 that was unrecorded on its accounting records
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At the end of its accounting period, December 31, the Allowance for Doubtful Accounts for Far-Fetch Corp. showed a debit balance of $4,325. An aging of accounts receivable indicated the amount likely uncollectible to be $3,900.
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