Pats accrual basis net income


Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,000 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. Pat's accrual basis net income would be:

A. $18,000.

B. $34,000.

C. $23,000.

D. $29,000.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Pats accrual basis net income
Reference No:- TGS086911

Expected delivery within 24 Hours