Part B: Questions (50 points-90 minutes) Problem 1(S points) Indicate the affect, if any, that each of the following business transactions would have on Furniture Inc.'s (FI's) revenues and expenses under the cash basis and the accrual basis. If there is no affect, leave the box blank. 1. A customer places an order with FI for a piece of custom furniture. The agreed upon price for the furniture will be S15,000. The customer pays FI a $1,500 deposit for the custom furniture order FI purchases on account from a supplier $7,000 of materials needed to construct the piece 2. 3. of custom furniture. 4. FI pays the $7,000 which had been placed on account with the supplier 5. FI completes the piece of custom furniture, delivers it to the customer's home, and invoices the customer for the remaining amount owed. In completing the custom furniture order, all of the materials that had been purchased to construct the custom furniture had been consumed. 6. 7. The customer pays FI the full amount that was invoiced. Transaction Cash Basis Accrual Basis Cash BasisAccrual Basis Revenues Revenues xpenses Ex 2