Sparkling Pools Performed $1,600 of Pool Maintenance Services During July;

question 94

Multiple Choice

Sparkling Pools performed $1,600 of pool maintenance services during July; the customers had paid in advance for these services in June.The company performed $1,000 of pool maintenance services during July and collected payment from those customers in August.Also,during July,the company accepted an order to perform $500 of pool maintenance services in August; the customers will pay for these services in August.The company uses accrual basis accounting.The Service Revenue account should be credited for:

• A) $1,600 in June, $1,000 in July, and $500 in August.
• B) $1,600 in June, $0 in July, and $1,500 in August.
• C) $0 in June, $1,600 in July, and $1,500 in August.
• D) $0 in June, $2,600 in July, and $500 in August.

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Definitions:

Imported Goods

Products or commodities that are brought into a country from abroad for sale.

Revenue

Revenue is the total income generated by a company or individual from their normal business operations or activities.

Italian Wine

Wine produced in Italy, known for its vast variety and quality, deeply rooted in the country's historical and cultural traditions.

Domestic Production

The total output of goods and services produced within the borders of a country.