Question
Question 16 Davis Co., an interior design firm, billed a client $15,000 for work completed for the client during December 20X6. This $15,000 was not
Question 16
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Davis Co., an interior design firm, billed a client $15,000 for work completed for the client during December 20X6. This $15,000 was not received until January 20X7. Also, Davis Co. collected $9,000 from another client in December 20X6 in advance of services to be performed in January 20X7. Based on these facts, on an accrual basis under generally accepted accounting principles, the amount of revenue recognized as earned
in December 20X6 should be
a. $6,000.
b. $9,000.
c. $15,000.
d. $24,000.
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Managerial Accounting
Authors: Karen Braun, Wendy Tietz, Louis Beaubien
4th Canadian Edition
013544344X, 9780135443446
