A company records items on the cash basis throughout the year and converts to an accrual basis for year-end reporting. Its cash-basis net income for the year is $70,000. The company has gathered the following comparative Balance Sheet information: Beginning of year End of vear Accounts payable Unearned revenue Wages payable Prepaid rent Accounts receivable 3,000 1,000 500 400 300 300 1,200 1,400 1,500 What amount should the company report as its accrual-based net income for the current year? a. 68,800 b. 70,200 c. 71,200 d. 73,200
