To recognize the income earned but not yet received by the end of the accounting year. It is blocked even if 'accrual bill' profit increases the future of income earned to the accounting year from $1300 to $3700.

To balance off the incident at the end of the accounting year. The balance is transferred to the credit side of the income statement to include in the calculation of profit or loss for the year.

The accrual brought down to the start of the next accounting year until the bakery receives the next commission. It is toward the account or income receivable will revert to current asset of the business.

To recognize the income earned, but the credit amount did not match the debit amount of the accounting entry.