Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $180,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: Cash collected for: Services to customers Cash paid for: $188,000 $400,000 Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow 33,000 17,000 7,000 28,000 273,000 $127,000 You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: January 1, 2021 December 31, 2021 Accounts receivable $40,000 $31,000 Prepaid insurance e 2,800 Supplies 1,800 1,900 Accrued liabilities (for miscellaneous expenses) 3,200 4,400