Your examination of the records of a company that follows the cash basis of accounting tells you that the company’s reported cash-basis earnings in 2025 are $33,640. If this firm had followed accrual-basis accounting practices, it would have reported the following year-end balances.

InstructionsDetermine the company’s net earnings on an accrual basis for 2025. Show all your calculations in an orderly fashion.

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Accounts receivable Supplies on hand Unpaid wages owed Other unpaid expenses 2025 $3,400 1,300 2,000 1,400 2024 $2,800 1,460 2,400 1,100