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Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Orange Lily
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $2,790 for six months of advertising. Orange Lily Law Firm recorded $2,790 in the Prepaid Advertising account. If Orange Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28? Enter this value as a positive number. Secure Home 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, Secure Home has collected $1,970 from cash-paying customers. Secure Home's remaining customers owe the business $2,480. Secure Home recorded $1,970 of service revenue for the year. If Secure Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year
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