During 2014,a company provided services for cash of $21,000 and services on credit of $15,000.The company collected accounts receivable of $8,000 and incurred operating expenses of $22,700,$14,000 of which were paid during the year.The amount of net income (loss)for the year is:
A)$13,300.
B)($1,700).
C)$22,700.
D)$6,300.

Question

Quizplus · Accepted Answer

- The company provided services for cash of $21,000, which is revenue.
- The company provided services on credit of $15,000, which is Accounts Receivable.
- The company collected Accounts Receivable of $8,000, which is a reduction of Accounts Receivable.
- The company incurred operating expenses of $22,700, of which $14,000 were paid during the year, leaving $8,700 in Accounts Payable.
- To calculate net income, we add revenues and subtract expenses: 
Net Income = $21,000 (Cash Revenue) + $8,000 (Accounts Receivable Collection) - $22,700 (Operating Expenses) + $14,000 (Expenses Paid) = $20,300. Therefore, the correct answer is A) $13,300.

During 2014,a Company Provided Services for Cash of $21,000 and Services