Total Spa Services earned $$120,000$ of service revenue during $2025.$ Of the $$120,000$ earned, the business received $$94,000$ in cash. The remaining amount, $$26,000,$ was still owed by customers as of December $31.$ In addition, Total Spa Services incurred $$82,000$ of expenses during the year. As of December $31,$$$8,000$ of the expenses still needed to be paid. In addition, Total Spa Services prepaid $$11,000$ 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.

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

Cash basis

Service revenue

Expenses

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

Accrual basis

Service revenue

Expenses