The Upton Company reported a beginning balance of $1,600 and an ending balance of $2,200 in its Unearned Revenue account for Year 2.During the year,$8,000 of revenue was recognized.Based on this information,how much cash was received from customers?
A) $8,000
B) $8,600
C) $8,200
D) $9,000

Question

Quizplus · Accepted Answer

The cash received from customers can be calculated by adding the revenue recognized during the year to the increase in the Unearned Revenue account, then subtracting any decrease in the Unearned Revenue account. The Unearned Revenue increased by $600 ($2,200 ending balance - $1,600 beginning balance). Therefore, cash received is $8,000 (revenue recognized) + $600 (increase in Unearned Revenue) = $8,600.

The Upton Company Reported a Beginning Balance of $1,600 and an Ending