Ultramega Company collected $19,600 in May of 2015 for 4 months of service which would take place from October of 2015 through January of 2016. The revenue reported from this transaction during 2015 would be
A)0.
B)$4,900.
C)$14,700.
D)$19,600.

Question

Quizplus · Accepted Answer

The revenue for 2015 includes services provided from October to December, which is 3 months. Therefore, $19,600 divided by 4 months equals $4,900 per month. For 3 months, the revenue is $4,900 x 3 = $14,700.

Ultramega Company Collected $19,600 in May of 2015 for 4