1. What does the (new) revenue recognition principle require?

2. During July, 2021, Elizabeth Corporation earned $3 300 of revenues on account; collected $5 600 from a customer for services provided in June, 2021. Elizabeth incurred $860 of repair expense and paid cash for this expense during July, 2021. Elizabeth also paid out $180 for June rent expense during July, 2021. Elizabeth's creditors require that Elizabeth determine earnings in accordance with GAAP. What amount of net income should Elizabeth report for the month ended July 31, 2021?