Southeast Industries Inc

Southeast Industries Inc. charges $185 per month for a storage unit. In the first quarter of the year, they collected $9,065. Ten customers pre-paid for three months rental in January, seven customers pre-paid for two months rental in February, and five customers paid for one month rental in March. Using the cash basis of accounting, Southeast will recognize ________ in revenue for January and ________ using the accrual basis.

A) $9,065; $5,550
B) $5,550; $9,065
C) $1,850; $5,550
D) $5,550; $1,850

Correct Answer:

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