Turner Company collected $13,000 in September of 2013 for 5 months of service which would take place from October of 2013 through February of 2014. The revenue reported from this transaction during 2013 would be
A) $0.
B) $7,800.
C) $13,000.
D) $5,200.

Question

Quizplus · Accepted Answer

The revenue reported during 2013 would only be for the month of October through December, which is a total of 3 months. Therefore, the revenue recognized in 2013 would be (3/5) x $13,000 = $7,800.

Turner Company Collected $13,000 in September of 2013 for 5