Using accrual accounting rules, ABC Co. receives a deposit of $2,000 on January 1, 2022, for services it will provide in March 2022. At the end of March, the services are delivered to its customer. How much in revenue does it recognize in March 2022? A. $2,000 O B. No revenue is recognized. O C. It depends on the form of payment. O D. $666.66 is recognized, as the $2,000 is spread out over the months of January, February, and March.

Using accrual accounting rules, ABC Co. receives a deposit of $2,000 on January 1, 2022, for services it will provide in March 2022. At the end of March, the services are delivered to its customer. How much in revenue does it recognize in March 2022? A. $2,000 O B. No revenue is recognized. O C. It depends on the form of payment. O D. $666.66 is recognized, as the $2,000 is spread out over the months of January, February, and March.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
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WHAT IS THE TOTAL AMOUNT INCLUDED IN THE "TRADE AND OTHER RECEIVABLE"
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CHOICES a. P 4,068,200b. P 4,083,200c. P 4,163,200d. P 4,868,200
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