Your examination of the records of a company that follows the cash basis of accounting
tells you that the companyâ€™s reported cash basis earnings in 2010 are $33,640.
If this firm had followed accrual basis accounting practices, it would have
reported the following year-end balances.
receivable $3,400 $2,300
on hand 1,400
wages owed 1,500 2,400
unpaid amounts 1,300 1,600
Determine the companyâ€™s net earnings on an accrual basis
for 2010. Show all your calculations in an orderly fashion.