- 3. Revenue recognition accrual basis vs. cash basis (2pts): Ring The Bells, Inc. provides doorbell repair services to customers. The accountant for Ring The Bells noted the following events which took place during December 2021: i. ii. iii. iv. Provided $15,200 worth of services to customers on December 3rd, with all customers paying cash at the time of service. Received $17,340 in cash on December 9th, 2021 from customers for services that had already been provided on account on November 25th, 2021. Provided $28,300 worth of services on account to customers on December 17th. Cash was collected from customers related to these services on January 9th, 2022. Received $7,835 in cash in advance on December 29th from customers for services which will be provided on January 3rd, 2022. a. Using cash-basis accounting, how much revenue would Ring the Bells record for December 2021? Briefly explain or show how you got your answer. b. Using accrual-basis accounting, how much revenue would Ring the Bells record for December 2021? Briefly explain or show how you got your answer. 4. Expense recognition - accrual basis vs. cash basis (1.5pts): Ring The Bells, Inc. provides doorbell repair services to customers. The accountant for Ring The Bells noted the following events which took place during December 2021: i. ii. On December 23rd, 2021, paid $9,000 in cash in advance for rent, covering rent for the period January 2022 - June 2022. On December 28th, 2021, received a utilities bill for $425 for December 2021 utilities. The firm will pay this bill in January 2022. iii. On December 30th, paid $39,500 in cash for December 16th - 30th 2021 wages. a. Using cash-basis accounting, how much in expenses would Ring the Bells record for December 2021? Briefly explain or show how you got your answer. b. Using accrual-basis accounting, how much in expenses would Ring the Bells record for December 2021? Briefly explain or show how you got your answer.