Question
Asked Jan 24, 2020
58 views
Purrfect​ Pets, Inc. provides animal daycare for
$ 28
per day. Customers buy three month​ packages, which provide
15
days of care per month. In January they received cash payments from
12
customers. For the month of​ January, they will recognize​ ________ of revenue under the cash​ basis, and​ ________ of revenue under the accrual basis.
 
A.
$15,120​;$5,040
 
B.
$ 420​; $1,260
 
C.
$5,040​;$5,040
 
D.
$15,120​;$15,120
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Expert Answer

Step 1

Compute cash received in January.

Accounting homework question answer, step 1, image 1
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Step 2

Compute revenue under accrual...

Accounting homework question answer, step 2, image 1
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Financial Accounting

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