Suppose you work summers house-sitting for people while they are away on vacation. Most of your customers
Question:
Suppose you work summers house-sitting for people while they are away on vacation. Most of your customers pay you immediately after you finish a job. A few ask you to send them a bill. It is now June 30 and you have collected $600 from cash-paying customers. Your remaining customers owe you $1,400. How much service revenue would you have under the
(a) Cash basis
(b) Accrual basis of accounting? Which method of accounting provides more information about your house-sitting business? Explain your answer.
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Service revenue a Cash basis 600 b Accrual basis 2000 1400 600 The accrual ...View the full answer
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