Carol Garcia, M.D., maintains the accounting records of Garcia Clinic on a cash basis. During 2025, Dr. Garcia collected $149,578 from her patients and paid $56,407 in expenses. At January 1, 2025, and December 31, 2025, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.)

January 1, 2025 December 31, 2025 Accounts receivable $8,937 $17,166 Unearned service revenue 2,829 4,062 Accrued expenses 3,154 2,265 Prepaid expenses 1,953 3,173