Question
Peace of mind provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some
Peace of mind provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Peace of Mind has collected $900 from cash-paying customers. Peace of MindPeace of Mind's remaining customers owe the business $1,200.
How much service revenue would Peace of MindPeace of Mind have for the year under the
a. cash basis?
b. accrual basis?
A. under the cash basis, Peace of mind will record $_______ of service revenue for the year.
B. Under the accrual basis, Peace of mind will record $_______ of service revenue for the year.
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