During the year. Black Diamond Company earned $86,500 in revenue. At year-end, only $65,000 of that revenue

Question:

During the year. Black Diamond Company earned $86,500 in revenue. At year-end, only $65,000 of that revenue had been collected. Also, Black Diamond incurred $44,000 of expenses of which only $35,000 had been paid.
Required
Determine net income for the year under (a) the cash basis of accounting and (b) the accrual basis of accounting.