A companys financial records at the end of the year included the following amounts:

Melodys Piano School operations for the month of May were limited to the following transactions: Provided $1,300 of piano lessons to students who paid in cash. Provided $1,020 of piano lessons on account. Collected $765 from students who took piano lessons during April. Paid Aprils piano rental bill of $575. Received Mays piano rental bill of $625 and set it aside for payment in June. Assuming that the company uses cash basis accounting, what is net income for May?

What is the amount of net income on the income statement for the year?

Multiple Choice

• $38,500.

• $20,500.

• $29,500.

• $90,500.