Reference no: EM132680749

Saxa Company collected $10,000 cash from customers in March for sales that occurred in February. The following information relates to Saxa Company's operations:

1. Saxa Company sold $2,500 of goods in March. Saxa collected $1,200 in cash from these sales in March and $1,300 in April.
2. Saxa Company sold a one-year service contract to a customer for $9,000 cash on March 1. The service contract starts on March 1.
3. On March 1, Saxa Company signed a six-month contract with a customer to provide $6,000 of services beginning May 1. The customer paid half of the contract amount on this date.

Problem 1: What is Saxa Co.'s March revenue using a cash-basis accounting system?

Problem 2: What is Saxa Co.'s March revenue using an accrual-basis accounting system?