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. $ 52,000

b. $ 62,000

c. $148,000

d. $ 42,000

e. $ 92,000