Atlas Fitness gains a client who prepays $420 for a package of six physical training sessions. Atlas Fitness collects the $420 in advance and will provide the training later. After four training sessions, what should Atlas Fitness report on its income statement assuming it uses the accrual basis accounting method?

A: Cash of $140

B: Service revenue of $420

C: Service revenue of $280

D: Unearned service revenue of $280

Atlas Fitness gains a client who prepays $420 for a package of six physical training sessions. Atlas Fitness collects the $420 in advance and will provide the training later. After four training sessions, what should Atlas Fitness report on its income statement assuming it uses the accrual basis accounting method? OA. Cash of $140 OB. Service revenue of $420 OC. Service revenue of $280 OD. Unearned service revenue of $280