String LLC earned sales of $195,000 in cash and $345,000 on account during 2019. Of the $345,000 on account, 35% was collected in cash from customers in 2019. The company incurred expenses of $235,000 and made related cash payments of $70,000. Compute net income under (a) cash basis accounting and (b) the accrual basis accounting: O Cash-Basis $245,750 Accrual basis $305,000 O Cash-Basis $125,000 Accrual basis $110,000 O Cash-Basis $195,000 Accrual basis $305,000 O Cash-Basis $125,000 Accrual basis $140,000) Sale of merchandise on credit for $4,000 was recorded by debiting Cash and Crediting sales. They entry needs to be corrected by: Debit Accounts Receivable $4,000, credit Cash $4.000. O Debit Cash $4,000, credit Accounts Receivable $4,000. O Debit Accounts Receivable $4,000, credit Sales $4,000. O Debit Sales $4,000, credit Cash $4,000