The following information applies to the questions displayed below.]

Melodys Piano School operations for the month of May were limited to the following transactions:

	Provided $1,200 of piano lessons to students who paid in cash.
	Provided $940 of piano lessons on account.
	Collected $705 from students who took piano lessons during April.
	Paid Aprils piano rental bill of $525.
	Received Mays piano rental bill of $575 and set it aside for payment in June.

3.

value: 2.00 points

Required information

What is Melody's Net Income for May using the accrual basis of accounting?

$705

$1,380

$2,170

$1,565