A Local Medical Clinic Operates Five Days Per Week with a Daily

Multiple Choice

A local medical clinic operates five days per week with a daily payroll of $100,000. Employees are paid every Tuesday for the prior week's work (Monday through Friday) . The last day of the month is Tuesday, April 30. What effect does the accrual at April 30 have on the clinic's net income?

A) Increase by $200,000
B) Decrease by $300,000
C) Decrease by $200,000
D) Increase by $300,000