The Carluccis Decided to Open a Resort

question 9

Multiple Choice

The Carluccis decided to open a resort. In the first month of operation they collected cash and credit card receipts of $1,612.50. All rooms rent out at $75 a night and during the month they had 19 room rentals. In addition to the 19 rentals, they received non-refundable deposits of $37.50 each on another five nights of rentals. Two of those deposits related to the current month and the people failed to show up. The Carluccis did not refund the deposits for these two customers. The remaining three deposits are for future stays. The appropriate amount for them to recognize as revenue for their first month is

• A) $1,425.
• B) $1,500.
• C) $1,800.
• D) $1,575.

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Definitions:

Adoption of New Technology

The process by which individuals, businesses, or societies begin using new technological tools, systems, or products, often to improve efficiency, productivity, or quality of life.

Government Aid

Financial assistance or other resources provided by the government to individuals, organizations, or countries in need.

Profit-Making Organizations

Entities that operate with the primary goal of earning revenue in excess of their operational costs.

Private Non-Profit Agencies

Organizations that operate independently from government control, not seeking to generate profits for owners or shareholders, and often focused on serving social or community-based causes.