EBK HORNGREN'S ACCOUNTING, THE FINANCIA
12th Edition
ISBN: 9780134490496
Author: Matsumura
Publisher: YUZU
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Chapter 3, Problem S3.2SE
Comparing cash and accrual basis accounting for revenues
| Learning Objective 1 |
Protection Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Protection Home has collected $900 from cash-paying customers. Protection Home’s remaining customers owe the business $1,300.
How much service revenue would Protection Home have for the year under the
- cash basis?
- accrual basis?
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Chapter 3 Solutions
EBK HORNGREN'S ACCOUNTING, THE FINANCIA
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