Current Attempt in Progress Waterway Company had the following transactions during 2020: Sales of $4600 on account Collected $2300 for services to be performed in 2021 Paid $1600 cash in salaries Purchased airline tickets for $260 in December for a trip to take place in 2021 What is Waterway's 2020 net income using cash basis accounting? $700. $5300. $440. $5040. Adjusting entries are required O because some costs expire with the passage of time and have not yet been journalized. O when the company's profits are below the budget. when expenses are recorded in the period in which they are incurred. O when revenues are recorded in the period in which services are performed