Question 2 of 5 < > View Policies Current Attempt in Progress In its first year of operations, Blossom Company recognized $33,400 in service revenue, $7,700 of which was on account and still outstanding at year-end. The remaining $25,700 was received in cash from customers. The company incurred operating expenses of $18,500. Of these expenses, $12,760 were paid in cash; $5,740 was still owed on account at year-end. In addition, Blossom prepaid $2,780 for insurance coverage that would not be used until the second year of operations. (a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting. Cash Basis Net Income Accrual Basis