Your answer is partially correct.

In its first year of operations, Blossom Company recognized $$34,160$ in service revenue, $$7,320$ of which was on account and still

outstanding at year$-$end. The remaining $$26,840$ was received in cash from customers.

The company incurred operating expenses of $$19,276.$ Of these expenses, $$14,640$ were paid in cash; $$4,636$ was still owed on

account at year$-$end. In addition, Blossom prepaid $$2,928$ for insurance coverage that would not be used until the second year of

operations.

$($a$)$ Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the

accrual basis of accounting.