1. Accrual- and Cash-Basis Expense Recognition

   The following information is taken from the accrual accounting records of Kroger Sales Company:

   1. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next 2 months (February and March). The supplies will be used evenly over the next 2 months.
   2. Kroger pays its employees at the end of each month for salaries earned during that month. Salaries paid at the end of February and March amounted to $4,525 and $5,900, respectively.
   3. Kroger placed an advertisement in the local newspaper during March at a cost of $850. The ad promoted the pre-spring sale during the last week in March. Kroger did not pay for the newspaper ad until mid-April.

   Required:

   Note: Enter all values as positive amounts.

   1. Under cash-basis accounting, how much expense should Kroger report for February and March?

   February	$
   March	$

   2. Under accrual-basis accounting, how much expense should Kroger report for February and March?

   February	$
   March	$