4. Carlton City serves as a collecting agency for the local independent school district and for a local water district.

For this purpose, Carlton has created a single agency fund and charges the other entities a fee of 1 percent of the gross amounts collected. (The service fee is treated as a general fund revenue.) During the latest fiscal year, a gross amount of $268,000 was collected for the independent school district and $80,000 for the water district. As a consequence of the forgoing, Carlton’s general fund should:

a Recognize receipts of $348,000 b Recognize receipts of $344,520 c Record revenue of $3,480 d Record encumbrances of $344,520