Your examination of the records of a company that follows the cash basis of accounting tells you that the company's reported cash-basis earnings in 2017 are $33,640. If this firm had followed accrual-basis accounting practices, it would have reported the following year-end balances.
_____________________________2017 2016
Accounts receivable..................$3,400............$2,800
Supplies on hand.......................1,300..............1,460
Unpaid wages owed...................2,000.............2,400
Other unpaid expenses................1,400.............1,100
Instructions
Determine the company's net earnings on an accrual basis for 2017. Show all your calculations in an orderly fashion.