Question 4 ABC Company had the following transactions in Year 1: . . Earned $650 of service revenue. Half was paid in cash, the other half was sold on account. Paid $490 cash for salaries expense. In addition to the salary expense above, ABC Co. also recognized accrued salaries of $70. Collect $160 cash from accounts receivable. What amount of salary expense will ABC Company report on the Year 1 Income Statement? $560 $490 $420- $70