During 2019, a Company Makes Credit Sales of $600 000

Multiple Choice

During 2019, a company makes credit sales of $600 000, of which $475 000 is collected at year-end. It pays $175 000 in expenses and owes $50 000 for electricity used during 2019. What would the profit be if cash accounting rather than accrual accounting was used?

A) $150 000
B) $225 000
C) $300 000
D) $375 000