Question

Question 2 0.5/1 View Policies Show Attempt History You are viewing Attempt 2 Blindleia Care Corporation had the following selected transactions in September: 1. Collected $220 cash from customers for services performed in August. 2. Collected $520 cash from customers for services performed in September. 3. Billed customers $600 for services performed in September. 4. Performed $90 of services to customers who paid in advance in August. 5. Received $90 from customers in advance for services to be performed in October.

Answer 1

As per cash basis of accounting, revenue is recorded at the time of actual cash receipt. Hence, in the month of September, all revenue received in cash in in September, will be recorded as revenue for September.

In transaction 3, no cash was received during September and hence, it is not recorded as September revenue

In transaction 4, Cash was received in August, hence, it is revenue for August.

1	Collected $220 cash from customers for services performed in August	220
2	Collected $520 cash from customers for services performed in September	520
3	Billed customers $600 for services performed in September	0
4	Performed $90 of services to customers who paid in advance in August	0
5	Received $90 from customers in advance for services to be performed in October	90
	Total revenue	$830

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