The Following Data Relate to Falcon Company for the Year

The following data relate to Falcon Company for the year ended December 31, 2010.Falcon Company uses the cash basis.
Sales for cash
$180,000
Sales for credit
190,000
Cost of inventory sold
210,000
Collections from customers
350,000
Purchases of inventory on credit
200,000
Payment for purchases
220,000
Selling expenses (accrual basis)
60,000
Payment for selling expenses
70,000
Which of the following amounts represents income for Falcon Company for the year ended December 31, 2010?

A) $90,000
B) $80,000
C) $70,000
D) $60,000
E) none of the answers are correct

Correct Answer:

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