Style Monthly magazine reported $650,000 of revenue for the month.At the beginning of the month,its Unearned Revenue account had a balance of $190,000.At the end of the month,the account had a balance at $156,000.Based on this information,what is the amount of cash received from customers?
A) $460,000
B) $650,000
C) $684,000
D) $616,000

Question

Quizplus · Accepted Answer

Cash received from customers can be calculated by adding the increase in Unearned Revenue to the revenue reported for the month and then subtracting the beginning balance in the Unearned Revenue account. 
Increase in Unearned Revenue = Beginning Balance - Ending Balance = $190,000 - $156,000 = $34,000 
Revenue earned for the month = $650,000 
Cash received from customers = $650,000 + $34,000 - $190,000 = $494,000 
Therefore, the best choice is D, with the amount of cash received from customers being $494,000.

Style Monthly Magazine Reported $650,000 of Revenue for the Month