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Rebel Technology maintains its records using cash-basis accounting. During the year, the company received cash from customers, $40,000, and paid cash for salaries, $22,000. At the beginning of the year, customers owe Rebel $1,000. By the end of the year, customers owe $6,000. At the beginning of the year, Rebel owes salaries of $5,000. At the end of the year, Rebel owes salaries of $3,000.
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