REVENUE RECOGNITION AND MATCHING

Aunt Bea’s Catering Service provides catering service for special occasions. During 2009, Aunt Bea performed $125,000 of catering services and collected $118,500 of cash from customers. Salaries earned by Aunt Bea’s employees during 2009 were $38,500. Aunt Bea paid employees $35,000 during 2009. Aunt Bea had $1,200 of supplies on hand at the beginning of the year and purchased an additional $8,000 of supplies during the year. Supplies on hand at the end of 2009 were $1,800. Other selling and administrative expenses incurred during 2009 were $5,800.