In its first year of operations, Sandhill Co. recognized $31,800 in service revenue, $7,800 of which was on account and still outstanding at year-end. The remaining $24,000 was received in cash from customers. The company incurred operating expenses of $17,200. Of these expenses, $13,890 were paid in cash; $3,310 was still owed on account at year-end. In addition, Sandhill prepaid $3,260 for insurance coverage that would not be used until the second year of operations. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting. Cash Basis Accrual Basis Net Income $ e Textbook and Media Which basis of accounting (cash or accrual) provides more useful information for decision-makers? Accrual basis Cash basis LILAIDUon and Media