During 2011, New Company earned service revenues amounting to $200,000, of which

$120,000 were collected in cash; the balance will be collected in January 2012. The 2011

income statement of the company should report which of the following amounts for service

revenues?

A) $ 80,000

B) $120,000

C) $200,000

D) $320,000

E) None of the above is correct.