Expense Recognition $($or Matching$)$ Principle

The following information describes transactions for Morgenstern Advertising Company during July:

a$.$ On July $5,$ Morgenstern purchased and received $$24,300$ of supplies on credit from Drexel Supply Inc. During July, Morgenstern paid $$21,000$ cash to Drexel and used $$18,350$ of the supplies.

b$.$ Morgenstern paid $$10,000$ to salespeople for salaries earned during July. An additional $$610$ was owed to salespeople at July $31$ for salaries earned during the month.

c$.$ Paid $$2,950$ to the local utility company for electric service. Electric service in July was $$2,300$ of the $$2,950$ total bill.

Required:

Calculate the amount of expense recognized in July under cash$-$basis accounting.

$

Calculate the amount of expense recognized in July under accrual$-$basis accounting.

$