Need answer the question Revenue on account amounted to $5,000. Cash collections of accountsreceivable amounted to $2,300. Expenses for the period were $2,100. Thecompany paid dividends of $450. Net income for the period was:A. $1,200.B. $2,900.C. $2,850.D. $2,450.

Step 1: Define Net IncomeNet income indicates that a company is performing well and generating…

Answered: Revenue on account amounted to $5,000.…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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Revenue on account amounted to $5,000. Cash collections of accounts receivable amounted to $2,300. Expenses for the period were $2,100. The company paid dividends of $450. Net income for the period was: A. $1,200. B. $2,900. C. $2,850. D. $2,450.