申論題

四、The December 31，2013 balance sheet of Sauder Company had Accounts Receivable of £500,000 and a credit balance in Allowance for Doubtful Accounts of £33,000. During 2014, the following transactions occurred: sales on account £1,300,000; sales returns and allowances, £50,000; collections from customers, £1,215,000; accounts written off £35,000; previously written off accounts of £5,000 were collecte(D) Instructions

(d) Which basis would produce a higher net income for 2014 and by how much? (5%)