Suppose you started up your own tree trimming business. A customer paid you $175 in advance to trim his or her tree while he or she was on vacation. You trimmed trees for other customers but they have not paid you the due fees of $340 yet. A new customer pays you $150 cash for tree trimming. Answer the following questions about the correct way to account for your revenue under accrual basis accounting:
1. Name the accounts used to record these events.
2. Prepare the journal entries to record the three transactions.