Chapter 3 Homework Assignment eBook Video Calculator Cornerstone Exercise 3-16 (Algorithmic) Expenses and the Matching Concept The following information describes transactions for Morgenstern Advertising Company during July a. On July 5, Morgenster purchased and received $24,300 of supplies on credit from Drexel Supply Inc. During July, Morgenstern paid $21,860 cash to Drexel and used $8,680 of the supplies. b. Morgenstern paid $16,000 to salespeople for salaries earned during July. An additional $2,310 was owed to salespeople at July 31 for salaries earned during the month. c. Morgenstern paid $2,950 to the local utility company for electric service. Electric service in July was $2.500 of the $2.950 total bill Required: 1. Calculate the amount of expense recognized in July under cash-basis accounting 2. Calculate the amount of expense recognized in July under accrual basis accounting. 1. Under Cash-basis accounting expenses are recognized when cash is paid 2. Under accruat-besis accounting.expenses are recognized when incurred, which is generally in the same period as he revenue they need generale sense recognition for matching princi Learning Objective 2 Activate Windows Contact Windo