DrFlu Uses the Cash Basis to Keep His Accounting Records

Dr.Flu uses the cash basis to keep his accounting records.During 2014,he collected $350,000 from clients.At December 31,2013 he had accounts receivable of $100,000.At December 31,2014 he had accounts receivable of $125,000 and unearned revenue of $25,000.What did Dr.Flu earn in service revenue for 2014 using the accrual basis of accounting?

A) $275,000
B) $300,000
C) $325,000
D) $350,000