Skypress Company collected $11200 in May of 2022 for 4 months of service which would take place from October of 2022 through January of 2023.The revenue reported from this transaction during 2022 would be:

Question

Quizplus · Accepted Answer

The revenue reported during 2022 would only include the amount earned during the months of October, November, and December, which is 3 months. To calculate this, you can divide the total collected ($11,200) by the total number of months of service (4) and then multiply by 3.

$11,200 ÷ 4 = $2,800 
$2,800 x 3 = $8,400

Therefore, the revenue reported from this transaction during 2022 would be $8,400.

Skypress Company Collected $11200 in May of 2022 for 4