Response to the following problem:
A Under the accrual basis of accounting, revenues are recorded when the services are rendered. Since the services were rendered during June, all the fees should be recorded on June 30. This is an example of accrued revenue. Under the cash basis of accounting, revenues are recorded when the cash is collected, not necessarily when the fees are earned. Thus, no revenue would be recorded in June, $8,500 of revenue would be recorded in July, and $6,500 of revenue would be recorded in August.