Pursual Inc. earned revenue by selling merchandise of $185,0…
Pursual Inc. earned revenue by selling merchandise of $185,000 collected in cash and $220,000 on account during 2021. Of the $220,000 on account, 20% was collected from customers in cash in 2021. The company incurred expenses of $235,000 and made related cash payments of $70,000 in 2021. Compute Net Income (Loss) under (a) cash basis accounting and (b) the accrual basis accounting
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