Soundgarden Company collected $18,200 in May of 2015 for 5 months of service which would take place from October of 2015 through February of 2016. The revenue reported from this transaction during 2015 would be
A)$0.
B)$7,280.
C)$10,920.
D)$18,200.

Question

Quizplus · Accepted Answer

The revenue for 2015 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 * $3,640 = $10,920.

Soundgarden Company Collected $18,200 in May of 2015 for 5