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Consulting Company had the following transactions in October. The companyhas a monthly accountingperiod and uses the ACCRUAL method. Transaction#1Company received$40,000in cash for a5-month consulting contract.

Consulting Company had the following transactions in October. The companyhas a monthly accountingperiod and uses the ACCRUAL method.

  • Transaction#1Company received$40,000in cash for a5-month consulting contract. The services will be provided evenly, beginning in October.
  • Transaction #2 Company provided $112,000 of consulting services on credit.
  • Transaction #3 Company collected $60,000 of cash on the consulting services provided in transaction #2.

What does the company report as revenue for the month of October?

A.

$100,000

B.

$152,000

C.

$120,000

D.

$112,000

E.

$180,000

F.

$68,000

G.

$8,000

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