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Part $1$

Peace of MindPeace$$of$$Mind

provides$$ house$-$sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the$$ year,

Peace of MindPeace$$of$$Mind

has collected

$ $700$$$700$

from$$ cash$-$paying customers.

Peace of MindPeace$$of$$Mind$\text{'}$s

remaining customers owe the business

$ $1$ comma $200$$$1,200.$

How much service revenue would

Peace of MindPeace$$of$$Mind

have for the year under the

a$.$ cash$$ basis?

b$.$ accrual$$ basis?

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Part $1$

a$.$

Under the cash basis, Peace of Mind will record service revenue for the year in the amount of