Sheridan Corp. sells $6310 of goods on account in the current year and collects $3310 of this. It incurs $4200 in expenses on account during the current year and pays $2600 of them. Sheridan would report what amount of net income under the cash and accrual bases of accounting, respectively?
a) $2110 on the cash basis and $3000 on the accrual basis.
b) $3000 on the cash basis and $2110 on the accrual basis.
c) $3310 on the cash basis and $4200 on the accrual basis.
d) $710 on the cash basis and $2110 on the accrual basis.
Get Answers For Free
Most questions answered within 1 hours.