During 20B,New Company earned service revenues amounting to $200,000,of which $120,000 were collected in cash; the balance will be collected in January 20C.The 20B income statement of the company should report which of the following amounts for service revenues?
A)$80,000.
B)$120,000.
C)$200,000.
D)$320,000.

Question

Quizplus · Accepted Answer

The income statement should report the total service revenues earned during the period, regardless of when the cash is collected. Therefore, $200,000 should be reported as service revenues for 20B.

During 20B,New Company Earned Service Revenues Amounting to $200,000,of Which