Kelsey Allerton began a music business in July 2016. Allerton prepares monthly financial statements and uses the accrual basis of accounting. The following transactions are Allerton Company's only activities during July through October: Jul 14 Bought music on account for $25, with payment to the supplier due in 90 days. Aug 3 Performed a job on account for Jimmy Jones for $40, collectible from Jones in 30 days. Used up all the music purchased on July 14. Sep 16 Collected the $40 receivable from Jones. Oct 22 Paid the $25 owed to the supplier from the July 14 transaction. If Allerton Company uses the cash basis of accounting instead of the accrual basis, in what month will Allerton report revenue and in what month will it report expense? Revenue Expense A. August August B. September October C. August October D. September July