Skypress Company collected $11,200 in September 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 2022 would be:
A)$0.
B)$8,400.
C)$11,200.
D)$2,800.

Question

Quizplus · Accepted Answer

The revenue for 2022 would be $2,800 because only the service provided in January 2022 is recognized in 2022. The total amount is for 4 months, so $11,200/4 = $2,800 per month.

Skypress Company Collected $11,200 in September of 2021 for 4