The Anton Company reported a beginning balance of $13,200 and an ending balance of $14,400 in its Unearned Revenue account for 2016.During the year,$36,000 of revenue (previously unearned)was recognized.Considering only this information,how much cash was received from customers?

Question

Quizplus · Accepted Answer

The increase in the Unearned Revenue account from $13,200 to $14,400 indicates that the company received cash for $14,400 - $13,200 = $1,200 worth of goods or services in advance. 
During the year, the company recognized $36,000 of previously unearned revenue, which means they earned $36,000 - $1,200 = $34,800 in revenue that was paid for during the year. 
Therefore, the total cash received from customers is $34,800 + $1,200 = $36,000. 
Choice B ($37,200) is not correct since it includes the beginning balance of unearned revenue, which represents revenue received in advance in the previous year, and therefore should not be included in cash received from customers in 2016.

The Anton Company Reported a Beginning Balance of $13,200 and an Ending