Question
Seashore 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
Seashore 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, Seashore Home has collected $2,100 from cash-paying customers. Seashore Home's remaining customers owe the business $1,390. Seashore Home recorded $2,100 of service revenue for the year.
Q1:If Seashore Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year?
Q2: is it cash or accrual basis?
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