Glendale Company had the following transactions in August:
Earned $5,000 of revenues on account;collected $2,000 from a customer for services provided last month;incurred $500 of repair expense and paid cash;paid $300 for rent that it owed from the previous month.
What is the net income in August?
A)$500
B)$2,000
C)$6,500
D)$4,500

Question

Quizplus · Accepted Answer

D)Net income = Revenue - Expenses = $5,000 - $500 = $4,500.

Glendale Company Had the Following Transactions in August