In its first year of operations Blossom Company recognized $31,600 in service revenue, $8.100 of which was on account and still outstanding at year-end. The remaining $23.500 was received in cash from customers The company incurred operating expenses of $19,600. Of these expenses $13,800 were paid in cash $5.800 was still owed on account at year end. In addition, Blossom prepaid $3.120 for insurance coverage that would not be used until the second year of operations (a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting port urces Casti Bash Accrual Basis Net Income (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers