Response to the following problem:
Considering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified.
a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in April for insurance that covers the following month, May, only.
b. Matthews and Dudley Attorneys use the accrual basis of accounting. Matthews and Dudley Attorneys receive cash from customers in March for services to be performed in April.
C. Eckstein Company uses the accrual basis of accounting. Eckstein prepays cash in October for rent that covers the following month, November, only.
d. Gerbino Company uses the cash basis of accounting. Gerbino makes a sale to a customer in July but does not expect payment until August.