AA Lawn Care had the following transactions in May, its first month of business: 1. Collected $550

Question:

AA Lawn Care had the following transactions in May, its first month of business:
1. Collected $550 cash from customers for services provided in May.
2. Billed customers $725 for services provided in May.
3. Received $350 from customers for services to be provided in June.
4. Purchased $250 of supplies on account. All of the supplies were used in May but were paid for in June.
(a) Calculate profit for May using cash basis accounting.
(b) Calculate profit for May using accrual basis accounting