Kyle is a sole proprietor and keeps his books using the cash…
Kyle is a sole proprietor and keeps his books using the cash method. For tax purposes, Kyle uses the accrual method, which his CPA assists him with the calculation. For 2025 Kyle had cash receipts of $750,000, which included $125,000 collected on accounts receivable from 2024 sales. At the end of 2025, Kyle had $100,000 in accounts receivable from customers, all from 2025 sales. Compute Kyle’s accrual basis gross revenues for 2025.
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