Melody's Piano School operations for the month of May were limited to the following transactions.

Provided $900 of piano lessons to students who paid in cash

provided $700 of piano lessons on account

Collected $525 from students who took piano lessons during April

paid April's piano rental bill of $375

received May's piano rental bill of $425 and set it aside for payment in June

Assuming that the company uses cash basis accounting, what is the net income for May?

A. $1,600

B. 1,175

C. $1,050

D. $525