Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided.$($Expenses should be shown in$$ parentheses.$)$ Also, indicate the dollar amount of the revenue or expense. The $1$ transaction has been completed as an example.

Amount of Revenue $($Expense$)$ for May

Date

Cash Basis Amount of Revenue $($Expense$)$

Accrual Basis Amount of Revenue $($Expense$)$

May $1$

$$(1,800)$

$$0$

$2.$

After completing the$$ table, calculate the amount of net income or net loss for Catering under the accrual basis and cash basis accounting systems for $.$

$3.$

Considering your results from Requirement$2,$ which method gives the best picture of the true earnings of $$Catering$?$ Why?

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