The following data relate to Falcon Company for the year ended December 31, 2012 . Falcon Company uses the cash basis. Sales for cash $180,000 Sales for credit 190,000 Cost of inventory sold 210,000 Collections from customers 350,000 Purchases of inventory on credit 200,000 Payment for purchases 220,000 Selling expenses (accrual basis) 60,000 Payment for selling expenses 70,000 Which of the
following amounts represents income for Falcon Company for the year ended December 31, 2012?
a. $90,000
b. $80,000
c. $70,000
d. $60,000
e. None of the answers are correct.
D
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