Question
Sparkling Pools performed $1,600 of pool maintenance services during July; the customers had paid in advance for these services in June. The company performed $1,000
Sparkling Pools performed $1,600 of pool maintenance services during July; the customers had paid in advance for these services in June. The company performed $1,000 of pool maintenance services during July and collected payment from those customers in August. Also, during July, the company accepted an order to perform $500 of pool maintenance services in August; the customers will pay for these services in August. The company uses accrual basis accounting. The Service Revenue account should be credited for:
$1,600 in June, $1,000 in July, and $500 in August. | ||
$1,600 in June, $0 in July, and $1,500 in August. | ||
$0 in June, $1,600 in July, and $1,500 in August. | ||
$0 in June, $2,600 in July, and $500 in August. |
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