During May, Many Happy Returns, Inc. earned $1,400, of which $1,000 was collected, and had expenses of $800, of which $700 was paid. Its net income equals: $200 using accrual accounting versus $700 using bash basis. $700 using accrual accounting versus $200 using cash basis. $600 using accrual accounting versus $300 using cash basis. $300 using accrual accounting versus $600 using cash basis.