In its first year of operations Bink Company earned $40,000 in service revenue, $10,000 of which was on account and is still outstanding at year end (in other words the balance in accounts receivable at year end is $10,000). The company incurred operating expenses of $15,000, $13,000 of which were paid in cash and $2,000 was still owed on account at year end. Additionally, Bink purchased $4,000 of supplies by paying cash. $3,000 of the supplies were used during the period. Calculate Bink's first year earnings (net income) using the accrual basis of accounting. Select one: O a. $22,000 O b. $25,000 O c. $37,000 Od. $53,000 In its first year of operations Bink Company earned $40,000 in service revenue, $10,000 of which was on account and is still outstanding at year end (in other words the balance in accounts receivable at year end is $10,000). The company incurred operating expenses of $15,000, $13,000 of which were paid in cash and $2,000 was still owed on account at year end. Additionally, Bink purchased $4,000 of supplies by paying cash. $3,000 of the supplies were used during the period. Calculate Bink's first year earnings (net income) using the cash basis basis of accounting. Select one: O a. $20,000 O b. $13,000 Oc. $26,000 d. $17,000