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*E3-19 (Cash and Accrual Basis) Latta Corp. maintains its financial records on the cash basis of accounting.
Interested
in securing a long-term loan from
its regular
bank, Latta Corp. requests
you as its inde-
pendent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with
the following summarized data covering 2011, 2012, and 2013.
2011 2012 2013
Cash receipts from sales:
On 2011 sales $290,000 $160,000 $ 30,000
On 2012 sales
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