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

Respuesta :

Answer:

$7000

Explanation:

Date transaction Amount$

Yr 1. Revenue. 00000

Yr 1. Wages. - 0000

Yr2. Revenue. 10000

Yr2. Wages. 3000

Yr2. Ending bal. 7000