During 2016,a company provided services for cash of $21,000 and services on credit of $15,000.The company collected accounts receivable of $8,000 and incurred operating expenses of $22,700,$14,000 of which were paid during the year.The amount of net income (loss)for the year is:
A) $13,300
B) ($1,700)
C) $22,700
D) $6,300

Question

Quizplus · Accepted Answer

Net income is calculated as total revenues minus total expenses. Total revenues are $21,000 (cash) + $15,000 (credit) = $36,000. Total expenses are $22,700. Net income = $36,000 - $22,700 = $13,300.

During 2016,a Company Provided Services for Cash of $21,000 and Services