Considering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified. a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in May for insurance that only covers the following month, (June). May b. Matthews and Dudley Attorneys uses the accrual basis of accounting. Matthews and Dudley Attorneys receives cash from customers in June for services to be performed in July. July X c. Eckstein Company uses the accrual basis of accounting. Eckstein prepays cash in October for rent that covers the following month, (October). November X d. Gerbino Company uses the cash basis of accounting. Gerbino makes a sale to a customer in February but does not expect payment until March. August X Feedback Check My Work Cash basis: Cash receipts and cash payments are recorded in the month actually received and paid, respectively. Accrual Basis: Revenue is recognized in the month earned and expenses are recognized in the month incurred. Example: Received $1,000 cash in April for services to be performed in May. Cash Basis: Money recognized as a cash receipt in April. Accrual Basis: Revenue is recognized in May when earned