Shadow's Cleaning Service provides weekly cleaning services for $40 per week.In January,they collected payments from 50 customers for 3 months (12 weeks)of service each.For the month of January they will recognize ________ of revenue under the cash basis,and ________ under the accrual basis.

Question

Quizplus · Accepted Answer

Under the cash basis, all cash received is recognized as revenue, so $40 x 50 customers x 12 weeks = $24,000. Under the accrual basis, only the revenue for services provided in January is recognized, so $40 x 50 customers x 4 weeks = $8,000.

Shadow's Cleaning Service Provides Weekly Cleaning Services for $40 Per