Cornerstone Exercise 3-15 Expense Recognition (or Matching) Principle The following information describes transactions for Morgenstern Advertising Company during July: a. On July 5, Morgenstern purchased and recelved $24,300 of supplies on credit from Drexel Supply Inc. During July, Margenstern pad $20,500 cash to Drexel and used $18,450 of the supples b. Morgenstern paid $9,600 to salespeople for salanies earned during July. An additional $1,610 was owed to salespeople at July 31 for salaries eamed during the month c. Paid $2,950 to the local utility company for electric service. Electric service in July was $2,300 of the s2,950 total bill Required 1. Calculate the amount of expense recognized in July under cash-basis accounting 2. Calculate the amount of expense recognized in July under accrual-basis accounting. Previcus Check My All work saved MacBook Air 7 8