Using accrual accounting rules, ABC Co. receives a deposit of $2,000 on January 1, 2022, for services it will provide in March 2022. At the end of March, the services are delivered to its customer. How much in revenue does it recognize in March 2022? A. $2,000 O B. No revenue is recognized. O C. It depends on the form of payment. O D. $666.66 is recognized, as the $2,000 is spread out over the months of January, February, and March.

Using accrual accounting rules, ABC Co. receives a deposit of $2,000 on January 1, 2022, for services it will provide in March 2022. At the end of March, the services are delivered to its customer. How much in revenue does it recognize in March 2022? A. $2,000 O B. No revenue is recognized. O C. It depends on the form of payment. O D. $666.66 is recognized, as the $2,000 is spread out over the months of January, February, and March.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...

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