Question

5.) What is the amount of revenue recognized in October on an accrual basis? A.) $9,400...

5.) What is the amount of revenue recognized in October on an accrual basis?

A.) $9,400

B.) $1,900

C.) $1,500

D.) $4,400

The following transactions occurred in October:

  • Received $3,000 cash contribution from the owner of the business on October 4
  • Received $700 cash for services provided to a customer on October 7
  • Received $1,700 from a customer on October 14, in payment of his account receivable which arose from sales in August
  • Borrowed $2,000 from the bank by signing a promissory note on October 20
  • Received $1,200 cash from a customer on October 28 for services to be provided in November
  • Provided services to a customer on credit for $800 on October 30
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Answer #1
correct Option C i.e. $1500
Following transactions have impact on revenue
Increase in revenue
Received $700 cash for services provided to a customer on October 7                           700
Provided services to a customer on credit for $800 on October 30                           800
Total                        1,500
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