3.

Melodys Piano School operations for the month of May were limited to the following transactions:

	Provided $1,350 of piano lessons to students who paid in cash.
	Provided $1,060 of piano lessons on account.
	Collected $795 from students who took piano lessons during April.
	Paid Aprils piano rental bill of $600.
	Received Mays piano rental bill of $650 and set it aside for payment in June.

What is Melody's Net Income for May using the accrual basis of accounting?

A) $1,760

B) $2,455

C) $1,545

D) $795