Question: XYZ is a cleaning company. It bills clients a monthly fee of 10, 000 payable at the end of every quarter. For the month of

XYZ is a cleaning company. It bills clients a monthly fee of 10, 000 payable at the end of every quarter. For the month of April, May, and June, XYZ rendered service to ABC. ABC paid 30, 000 to XYZ on June 30.

1. If the company uses, the accrual basis, how much service fee will XYZ record for the month of April, May, and June?

2. Assuming ABC defaulted in its payment of 30, 000 to XYZ on June 30, how much service fee is recognized by XYZ for the month of June?

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