Morris Bart Inc (MBI) provides legal services. MBI offers a 20% discounts on its contingent fee services to any customer who pays the annual fee in January of each year. MBIs monthly contingent fee is $1,000 per month. On January 1, 20X2, 3 customers paid the annual fee and 4 customers paid for January services. How much if any should MBI record as revenues for January 20X2

• A.

  $32,800

• B.

  $6,400

• C.

  $40,000

• D.

  $7,000