The ABC Co. delivered $5,000 worth of window washing services in 2021 but only collected $4,300 in cash from customers this year. Its only expense is payroll, for which it paid $3,500 in 2021. At the end of the year, it had $550 in unpaid payroll. What would its net income be under accrual accounting? O A. $1,500 O B. $950 O C. $800 O D. $250

The ABC Co. delivered $5,000 worth of window washing services in 2021 but only collected $4,300 in cash from customers this year. Its only expense is payroll, for which it paid $3,500 in 2021. At the end of the year, it had $550 in unpaid payroll. What would its net income be under accrual accounting? O A. $1,500 O B. $950 O C. $800 O D. $250

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 18MC: Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of...

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