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Part $1$

Total Spa Services earned $ $150$ comma $000$ of service revenue during $2025.$ Of the $ $150$ comma $000$earned$,$ the business received $ $126$ comma $000$ in cash. The remaining$$ amount, $ $24$ comma $000,$ was still owed by customers as of December $31.$ In$$ addition, Total Spa Services incurred $ $80$ comma $000$ of expenses during the year. As of December $31,$ $ $7$ comma $000$ of the expenses still needed to be paid. In$$ addition, Total Spa Services prepaid $ $10$ comma $000$ cash in December $2025$ for expenses incurred during the next year.

Determine the amount of service revenue and expenses for $2025$ using a cash basis accounting system.

Determine the amount of service revenue and expenses for $2025$ using an accrual basis accounting system