Question

A company completed the following transactions during the month of​ October: I. Purchased office supplies on​ account, $ 5 comma 800. II. Provided services for​ cash, $ 20 comma 000. III. Provided services on​ account, $ 35 comma 000. IV. Collected cash from a customer on​ account, $ 31 comma 000. V. Paid the monthly rent of $ 3 comma 600. What was the​ company's total revenue for the​ month?

A. $ 20 comma 000
B. $ 86 comma 000
C. $ 35 comma 000
D. $ 55 comma 000

Answer 1

D. $ 55 comma 000

Step-by-step explanation:

The computation of the total revenue is shown below:

= Provided services for​ cash + Provided services on​ account

= $20,0000 + $35,000

= $55,000

In order to find out the total revenue, we considered only that transactions at which the revenues took place. So, only two transactions are relevant for the computation part