Accounting Cycle Tutorial Step 5: Adjusting Entries OOO 1 Understanding the Cash versus Accrual basis Activity 1.c-Identifying Differences between Cash and Accrual Basis Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $3,620 for six months of advertising. Orange Lily Law Firm recorded $3,620 in the Prepaid Advertising account. Accrual basis e Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28? Enter this value as a positive number Seashore Home provides house-sitting for people while they are away on vacation. Some of its customers pay h ir finished Snme customers ask that the business send them a bill. As of the end of the year na customers owe the