During 2019, a Company Makes Credit Sales of $600 000

question 6

Multiple Choice

During 2019, a company makes credit sales of $600 000, of which $475 000 is collected at year-end. It pays $175 000 in expenses and owes $50 000 for electricity used during 2019. Accrual profit is:

• A) $250 000
• B) $275 000
• C) $375 000
• D) None of the above