Unearned Revenue was $600 at the end of February and $750 at the end of March.Service Revenue was $4,200 for the month of March.How much cash was received from revenue during March?

Question

Quizplus · Accepted Answer

Cash received from revenue during March can be calculated as follows:

Service Revenue for March = $4,200

Unearned Revenue at the end of February = $600

Unearned Revenue at the end of March = $750

Cash Received = (Service Revenue for March - Increase in Unearned Revenue)

= ($4,200 - ($750 - $600))

= ($4,200 - $150)

= $4,050

Therefore, the answer is D.

Unearned Revenue Was $600 at the End of February and $750