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In Year 1, Costello Company performed work for a customer and billed the customer $10,000. In Year 2, the customer pays Costello Company for the services it rendered in Year 1. In Year 1, the company incurred $3,000 of wage expense, but it did not pay the employees until Year 2. If Costello Company uses the cash-basis of accounting, then it will report

asked
User Mathieug
by
7.9k points

1 Answer

1 vote

Answer:

$7000

Step-by-step explanation:

Date transaction Amount$

Yr 1. Revenue. 00000

Yr 1. Wages. - 0000

Yr2. Revenue. 10000

Yr2. Wages. 3000

Yr2. Ending bal. 7000

answered
User Hubert Dudek
by
7.6k points
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