Question: Rushmore Company provided services for $ 3 4 , 5 0 0 cash during Year 1 . Rushmore incurred $ 2 5 , 0 0

Rushmore Company provided services for $34,500 cash during Year 1. Rushmore incurred $25,000 of operating expenses on account during Year 1, and by the end of the year, $9,500 of that amount had been paid with cash. If these are the only accounting events that affected Rushmore during Year 1, which of the following statements is true?

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