Soundgarden Company collected $18,200 in May of 2018 for 5 months of service which would take place from October of 2018 through February of 2019. The revenue reported from this transaction during 2018 would be
A) $0.
B) $7,280.
C) $10,920.
D) $18,200.

Question

Quizplus · Accepted Answer

The revenue for 2018 would include the services provided from October to December, which is 3 months. The monthly revenue is $18,200 / 5 = $3,640. Therefore, for 3 months, the revenue is $3,640 * 3 = $10,920.

Soundgarden Company Collected $18,200 in May of 2018 for 5