The Flower Fern Law Firm prepays for advertising in the local newspaper. On January? 1, the law firm paid $7,000 for ten months of advertising.
How much advertising expense should Flower Fern Law Firm record for the two months ending February 28 under the a. cash? basis? b. accrual? basis?
a. Under the cash basis, Flower Fern Law Firm will record $ of advertising expense for the two months ending February 28.
b. Under the accrual basis, Flower Fern Law Firm will record $ of advertising expense for the two months ending February 28.