Mave CorpSells $5,000 of Goods on Account in the Current Year

Multiple Choice

Mave Corp.sells $5,000 of goods on account in the current year and collects $3,000 of this.It incurs $3,500 in expenses on account during the current year and pays $2,000 of them.Mave would report what amount of profit under the cash and accrual bases of accounting, respectively?

A) $1,500 on the cash basis and $2,000 on the accrual basis
B) $1,000 on the cash basis and $1,500 on the accrual basis
C) $3,500 on the cash basis and $1,000 on the accrual basis
D) $3,000 on the cash basis and $3,500 on the accrual basis