Chase Delivery Company provides next-day delivery across the mid-west.

At the start of June, Chase had fuel supplies costing $30,000 on hand.

On June 5, fuel costing $40,000 was purchased for cash and another $50,000 of fuel was purchased on account.

At the end of June, fuel costing $58,000 remains in inventory.

Question: What amount of fuel expense should be recognized in June when using accrual accounting?

Select one:

a. $ 62,000

b. $ 92,000

c. $ 42,000

d. $148,000

e. $ 52,000

Chase Delivery Company provides next-day delivery across the mid-west. At the start of June, Chase had fuel supplies costing $30,000 on hand. On June 5, fuel costing $40,000 was purchased for cash and another $50,000 of fuel was purchased on account. At the end of June, fuel costing $58,000 remains in inventory. Question: What amount of fuel expense should be recognized in June when using accrual accounting? Select one: a. $ 62,000 b. $ 92,000 c. $ 42,000 d. $148,000 e. $ 52,000