In its first year of operations, Ivanhoe Company recognized $31,600 in service revenue, $7,700 of which was on account and still outstanding at year-end. The remaining $23,900 was received in cash from customers. The company incurred operating expenses of $16,100. Of these expenses, $12,010 were paid in cash; $4,090 was still owed on account at year-end. In addition, Ivanhoe prepaid $2,690 for insurance coverage that would not be used until the second year of operations. * Your answer is incorrect. 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 Cash Basis Accrual Basis Net Income 10.210 $ eTextbook and Media 7,950