PLEASE EXPLAIN THE SUPPLIES EXPENSE ON ACCRUAL AND CASH-BASIS! Prepare 2-income statement based upon accrual accounting and cash-basis. Prepare an income statement showing revenues, expenses and net income for the current accounting period. a. Purchased $5,000 worth of supplies during the current accounting period. All supplies were paid for in cash. Supplies valued at $2,000 were used in patient care during the period. b. Billed patients $100,000 for medical services provided during the current accounting period. Collected $60,000 in cash from patients and 3rd party payers during the current accounting period