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BobCat company originated in December 2017. BobCat follows accrual accounting principles. The following transactions happened during...

BobCat company originated in December 2017. BobCat follows accrual accounting principles. The following transactions happened during the year:

December 2: Performed services on account for $45,000.
December 15: Collected $32,400 of the accounts receivable.
December 31: Paid the utility expense of $1,200.
Recorded $8,800 of accrued salaries at the end of the year.

What is total revenue that will be reported in the Income Statement?

  • A. 45,000

  • B. 32,400

  • C. 35,000

  • D. 37,200

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Answer #1
As per the accrual system of accounting, the revenue should be recorded
in the period for which services have been performed.
In the given case service performed for December for $45000
which should be recorded as revenue.
Hence correct Option: A.45000
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