16. Davis Co., an interior design firm, billed a client $15,000 for work completed for...
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Accounting
16. Davis Co., an interior design firm, billed a client $15,000 for work completed for the client during December 20X6. This $15,000 was not received until January 20X7. Also, Davis Co. collected $8,000 from another client in December 20X6 in advance of services to be performed in January 20X7. Based on these facts, on an accrual basis under generally accepted accounting principles, the amount of revenue appearing in the income statement for the year-ended December 31, 20X6 should be
a. $23,000.
b. $8,000.
c. $15,000.
$7,000.
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