Chapters 6 and 7 KQuestion 13 (of 25) Lewils Company begen operations on Februar

Question

Chapters 6 and 7 KQuestion 13 (of 25) Lewils Company begen operations on February 1, 2016, and expenienced the folowing events during the year 1 Earned $300.000 of revenue on account. 2. Collected $250,000 cash from accounts receivable. 3. Pald $110,000 cash for salaries expense 4. Adjusted the accounting records to reflect management's belief that $6.000 of the accounts receivable balance would be uncollectible. Lewis uses the allowance method of accounting for uncollectible accounts What is the Lewis Company's net income for 2016? $184.000 O $300.000 O $250.000 O $190.000

Explanation / Answer

Revenue earned 300,000 less :Salaries expense -110,000 less:Bad debts expense -6,000 Net income 184,000 Answer $184,000

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