Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,000 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. Pat's accrual basis net income was:
A) $18,000.
B) $34,000.
C) $23,000.
D) $29,000.

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Pat's Custom Tuxedo Shop Maintains Its Records on the Cash