Total Spa Services earned $$125,000$ of service revenue during $2024.$ Of the $$125,000$ earned, the business received $$101,000$ in cash. The remaining amount, $$24,000,$ was still owed by customers as of December $31.$ In addition, Total Spa Services incurred $$78,000$ of expenses during the year. As of December $31,$$$11,000$ of the expenses still needed to be paid. In addition, Total Spa Services prepaid $$3,000$ cash in December $2024$ for expenses incurred during the next year.

Determine the amount of service revenue and expenses for $2024$ using a cash basis accounting system.

Determine the amount of service revenue and expenses for $2024$ using an accrual basis accounting system.

Determine the amount of service revenue and expenses for $2024$ using a cash basis accounting system.

Cash basis

Service revenue

Expenses