$\backslash$table$[[$Amounts billed to customers for services rendered,Year $2,$Year $3],[,$$ $35$e$,069,$$ $450,000],[$Cash collected from credit customers,$260,060,460,060],[$Payment of rent,$80,6$e$9,0],[$Salaries paid to employees for services rendered during the year,$140,060,160,690],[$Utilities$,38,009,48,969],[$Advertising$,15,696,35,690]]$

In addition, you learn that the company incurred advertising costs of $$25,000$ in year $2,$ owed the advertising agency $$5,000$ at the end of year $1,$ and there were no liabilities at the end of year $3.$ Also, there were no anticipated bad debts on receivables, and the rent payment was for a two$-$year period, year $2$ and year $3.$

Required:

$2.$ Determine the amount due the advertising agency that would be shown as a liability on RPG$\text{'}$s balance sheet at the end of year $2.$

Calculate accrual net income for both years.

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