Walton Company collected $14,400 in May of 2021 for 4 months of service which would take place from October of 2021 through January of 2022.The revenue reported from this transaction during 2021 would be:
A)$0.
B)$10,800.
C)$14,400.
D)$3,600.

Question

Quizplus · Accepted Answer

The revenue for 2021 includes services provided from October to December, which is 3 months. Therefore, the revenue recognized in 2021 is $14,400 * (3/4) = $10,800.

Walton Company Collected $14,400 in May of 2021 for 4