Question: Consider the information in question 1. Using cash-basis accounting, on which date would Peterson Law record the $100 expense for each scenario?
1. Peterson Law asks Executive Lawn to provide $100 of landscape maintenance. Executive Lawn provides the service on April 10. Consider three scenarios:
a. Peterson pays for the lawn service in advance on March 28.
b. Peterson pays for the lawn service on April 10, the day of service.
c. Peterson pays for the lawn service the following month on May 2. If Peterson Law uses accrual-basis accounting, on which date would Peterson Law record the $100 expense for each scenario?