Angelo's Charges $280 Per Month for Catering Services

Angelo's charges $280 per month for catering services. In the first quarter of the year, they collected $19,600. Fifteen customers pre-paid for three months of catering beginning in January, ten customers pre-paid for two months of catering beginning in February, and five customers paid for one month of catering in March. Using the cash basis of accounting, Angelo's will recognize ________ in revenue for January and ________ using the accrual basis.

A) $4,200; $0
B) $7,000; $4,200
C) $12,600; $4,200
D) $0; $12,600

Correct Answer:

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