If all sales were made for cash, it would not be necessary to adjust the sales reported on the income statement.

Name: If all sales were made for cash, it would not be necessary to adjust the sales reported on the income statement.
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Question

Quizplus · Accepted Answer

If all sales were made for cash, there would be no need to adjust for uncollected receivables or bad debts, which are typical adjustments made to sales on the income statement when sales are made on credit.

If All Sales Were Made for Cash, It Would Not