Use the Following Information for Questions 63-64 $\bullet$ Sales of $4,500 on Account

Use the following information for questions 63-64.
Lamb Company had the following transactions during 2010.
$\bullet$ Sales of $4,500 on account
$\bullet$ Collected $2,000 for services to be performed in 2011
$\bullet$ Paid $625 cash in salaries
$\bullet$ Purchased airline tickets for $250 in December for a trip to take place in 2011

-What is Lamb's 2010 net income using accrual accounting?

A) $3,875
B) $5,875
C) $5,625
D) $3,625

Correct Answer:

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