2. Your examination of the records of a company that follows the cash basis of accounting (A+)

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 $39,784. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances. 2012 2011 Accounts receivable $3,755 $2,842 Supplies on hand 1,246 1,252 Unpaid wages owed 1,469 2,393 Other unpaid amounts 1,286 1,673 Determine the company\’s net earnings on an accrual basis for 2012. :

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