(solution) Speedy Delivery Company provides next-day delivery across the so

(solution) Speedy Delivery Company provides next-day delivery across the so

Speedy Delivery Company provides next-day delivery across the southeastern United States. During May, Speedy incurred $120,000 in fuel costs. Speedy paid $90,000 of the fuel cost in May, with the remainder paid in June. In addition, Speedy paid $15,000 in May to another fuel supplier in an effort to build up its supply of fuel. Required: Calculate the amount of expense recognized in May under (a) The cash-basis of accounting and (b) The accrual-basis of accounting.