3.2

Speedy Delivery Company provides next-day delivery across the southeastern United 5 tates. During May, Speedy incurred $136,940 in fuel costs. 5 peedy paid $89,370 of the fuel cost in May, with the remainder paid in June. In addition, Speedy paid $14,740 in May to another fuel supplier in an effort to buld up its supply of fuel. Required: 1. Calculate the amount of expense recognized in May under cash-basis accounting. 2. Calculate the amount of expense recognized in May under acerval-basis accounting