Assume that a lawyer bills her clients $15,000 on June 30, for services rendered during June. The lawyer collects $8,500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue? A. June, $15,000; July, $0; and August, $0 B. June, $0; July $6,500; and August, $8,500 C. June, $8,500; July $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500
. Assume that a lawyer bills her clients $15,000 on June 30, for services rendered during June. The lawyer collects $8,500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue?
A. June, $15,000; July, $0; and August, $0
B. June, $0; July $6,500; and August, $8,500
C. June, $8,500; July $6,500; and August, $0
D. June, $0; July, $8,500; and August, $6,500
Revenue: Revenue is the amount earned by the company by selling goods or providing services to the customers. It is determined by multiplying the number of units sold with the selling price per unit. The revenue recognition is different for accrual basis and cash basis of accounting.
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On March 31, she received $2,500 cash for legal services to be provided in April.
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