6. Bren Co.'s beginning inventory on January 1 was understated by S26,000, and its ending inventory on December 31 was overstated by $52,000. As a result, Bren's cost of goods sold for the year was A. Understated by $26,000. B. Overstated by $78,000. C. Understated by $78,000. D. Overstated by $26,000. 7. Pristine Company provides cleaning services and sells garbage bins to office clients. On June 1"t, Pristine delivered 100 garbage bins to a client, and also entered into a 5-year contract for Pristine to provide cleaning services to that client. Which of the following is most likely to be true? a) Revenue for the garbage bins and the cleaning services must be recognized on June 1* b) Revenue for the garbage bins is recognized on June 1 and no revenue will be recognized for the cleaning services until the end of the 5th year. c) Revenue for the garbage bins is recognized on June 1* and revenue for the cleaning d) Binz Compan service is recognized over the 5 years as those services are performed y should not recognize any revenue until the end of the 5th year On November 1, 2016, Taylor signed a one-year contract to provide landscaping services to King Associates, with the contract to start immediately. King agreed to pay Taylor $4,800 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2017. Taylor should recognize revenue in 2016 in the amount of 8. A. SO. B. $800. C. $2,400. D. $4,800