Multiple Choice
Southern Light Container Corp. charges $105 per month for a storage unit. In the first quarter of the year, they collected $5,145. 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, Southern will recognize ________ in revenue for February and ________ using the accrual basis.
A) $0; $735
B) $735; $1,470
C) $1,470; $1,785
D) $1,785; $2,520
Correct Answer:
Verified
Correct Answer:
Verified
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