During June, Busy Beaver performed $3,500 of services for clients on account. In June, $500 of this amount was collected in cash

Question

vekshin1

2 years ago

5

During June, Busy Beaver performed $3,500 of services for clients on account. In June, $500 of this amount was collected in cash

. The remaining $3,000 was collected in July. How much service revenue should Busy Beaver report for June?

Business

1 answer:

belka [17] · Answer 1 · 2023-08-01T13:26:17+03:00

Answer:

$3,500

Explanation:

The principle of revenue recognition occurs once the income is recognized or earned whether cash is received or not and it also meets the accounting accrual basis. Realizable means that the product was purchased by the client, but payment will be released later

So, according to the given situation, the service revenue would be reported in June is $3,500 only.