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Brief Exercise 3-5 (Algo) Determine accrual-basis and cash-basis net income (LO3-1, 3- 2) Manchester Technology...

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Accounting

Brief Exercise 3-5 (Algo) Determine accrual-basis and cash-basis net income (LO3-1, 3- 2) Manchester Technology maintains its records using cash-basis accounting. Consider the following: During the year, the company received cash from customers, $39,000, and paid cash for salaries, $21,800. At the beginning of the year, customers owe Manchester $1,200. By the end of the year, customers owe $5,800. At the beginning of the year, Manchester owes salaries of $4,800. At the end of the year, Manchester owes salaries of $2,900. Determine cash-basis net income and accrual-basis net income for the year. Answer is complete but not entirely correct. Cash-basis net income $ 17,2000 Accrual-basis net income $ 20,100 xx

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