The McKiernan Company made cash sales of services of $5,000 and credit sales of services of $4,200…
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The McKiernan Company made cash sales of services of $5,000 and credit sales of services of $4,200 during the month of July. The company incurred expenses of $6,000 during July of which $2,000 was paid in cash and the remainder was expected to be paid in August. Using the accrual method of accounting, net income for July amounts to: $7,200. $5,200. $3,200. $200.
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