Jarvis Company requires prepayment from all customers. Jarvis Company reported revenue of $248,000 on its 2013 income statement. The balance in its Unearned Revenue account was $12,000 at the start of 2013 and $4,000 at the end of the year. Based on this information alone, the amount of cash that Jarvis collected from customers for 2013 was $240,000.

Question

Quizplus · Accepted Answer

$4,000 ending balance + $248,000 revenue recognized - $12,000 beginning balance = $240,000 cash collected

Jarvis Company Requires Prepayment from All Customers