Turner Company collected $6,500 in May of 2010 for 5 months of service which would take place from October of 2010 through February of 2011. The revenue reported from this transaction during 2010 would be
A) $0.
B) $3,900.
C) $6,500.
D) $2,600.

Question

Quizplus · Accepted Answer

The revenue for 2010 would be for the months of October, November, and December, which is 3 months. The monthly revenue is $6,500 / 5 months = $1,300 per month. Therefore, for 3 months, the revenue is $1,300 * 3 = $3,900.

Turner Company Collected $6,500 in May of 2010 for 5