Assume that you are the sole proprietor of Collegiate Laundry Service that provides pick-up, cleaning, and delivery of laundry for students in local colleges. For the month of October 2010, you have the following information:
a. The business's records in October indicated $12,000 in laundry services for cash. They also showed 20 laundry services totaling $1,000 on account (due from college students in November).
b. You determined that the business used $800 in laundry supplies (the amount paid for the supplies) in October.
c. According to the business's checkbook in October, it paid $3,500 for employees' wages and $500 for other expenses. However, the business has not yet paid the $600 October advertising expense for newspaper advertisements run during October.
Required:
On the basis of the data given, what was net income for October? Show computations.