Use the Information Given Below to Answer the Following Questions

Multiple Choice

Use the information given below to answer the following questions:
During 2012, a company makes credit sales of $600 000, of which $350 000 is collected at year-end. It pays $220 000 in expenses and owes $20 000 for electricity used during 2012.
-Profit according to accrual accounting is:

A) $130 000
B) $380 000
C) $360 000
D) $710 000.