During the year ended December 31, 2016, Jones Inc. received $110,000 cash from customers.
The company began the year with a balance in Accounts Receivable of $15,000, all of which was received in 2016. At the end of the year, customers owed Jones Inc. $20,000 for services provided in 2016.
Calculate the revenue Jones should report in 2016 using:
a) the cash basis of accounting.
b) the accrual basis of accounting.