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Your examination of the records of a company that follows the cash basis of accounting
tells you that the company"s reported cash basis earnings in 2012 are $33,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances.
2012
2011
Accounts receivable
$3,400
$2,800
Supplies on hand
1,300
1,460
Unpaid wages owed
2,000
2,400
Other unpaid amounts
1,400
1,100
Instructions
Determine the company's net earnings on an accrual basis for 2012. Show all your calculations in an orderly fashion.
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