Dexter Technology maintains its records using cash-basis accounting. Consider the following: During the year, the company received cash from customers, $45,000, and paid cash for salaries, $24,500. At the beginning of the year, customers owe Dexter $1,200. By the end of the year, customers owe $7,000. At the beginning of the year, Dexter owes salaries of $6,000. At the end of the year, Dexter owes salaries of $3,500.
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Dexter Technology maintains its records using cash-basis accounting. Consider the following:
- During the year, the company received cash from customers, $45,000, and paid cash for salaries, $24,500.
- At the beginning of the year, customers owe Dexter $1,200. By the end of the year, customers owe $7,000.
- At the beginning of the year, Dexter owes salaries of $6,000. At the end of the year, Dexter owes salaries of $3,500.
Determine cash-basis net income and accrual-basis net income for the year.
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