Bob's Hats is an unincorporated business. During 2020, its first year of operations, the business has cash sales of $123,000. It also has account sales of $46,000, of which $22,000 remains uncollected at the end of 2020. It is estimated that $4,000 of these accounts will be uncollectible. Of the cash amounts received, $9,500 is for merchandise that will be delivered in 2021. By what amount will the 2020 net business income of Bob's Hats be increased by the preceding information?

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The Answer of Bob's Hats is an unincorporated business. During 2020, its first year of operations, the business has cash sales of $123,000. It also has account sales of $46,000, of which $22,000 remains uncollected at the end of 2020. It is estimated that $4,000 of these accounts will be uncollectible. Of the cash amounts received, $9,500 is for merchandise that will be delivered in 2021. By what amount will the 2020 net business income of Bob's Hats be increased by the preceding information?

Bob's Hats Is an Unincorporated Business