The following information describes transactions for Morgenstern Advertising Company during July: On July 5, Morgenstern purchased and received...

The following information describes transactions for Morgenstern Advertising Company during July:

1. On July 5, Morgenstern purchased and received $24,300 of supplies on credit from Drexel Supply Inc. During July, Morgenstern paid $19,700 cash to Drexel and used $19,150 of the supplies.
2. Morgenstern paid $8,700 to salespeople for salaries earned during July. An additional $710 was owed to salespeople at July 31 for salaries earned during the month.
3. Paid $2,950 to the local utility company for electric service. Electric service in July was $2,300 of the $2,950 total bill.

Required:

1. Calculate the amount of expense recognized in July under cash-basis accounting.

$ 

2. Calculate the amount of expense recognized in July under accrual-basis accounting.

$