On December 1, 2016, Bob's Snow Removal Service received $1,200 cash in advance for an agreement to remove snow from a client's parking log during the months of December, January, and February. How much revenue should be included in the December 31, 2016, income statement with respect to this transaction under the accrual-basis and cash-basis accounting, respectively?

Select one:

accrual $400; cash $1,200

accrual $0; cash $1,200

accrual $1,200; cash $1,200

accrual $400; cash $0