TLR Consulting keep their accounting records using the cash basis. During 2014, they collected $275,000 from clients. On December 31, 2013 they had accounts receivable of $50,000 and on December 31, 2014 they had accounts receivable of $35,000. Additionally, they had unearned revenues of $7,000. Using the accrual basis of accounting, what did TLR Consulting earn in service fees for 2014?
A) $253,000
B) $267,000
C) $283,000
D) $297,000
Answer: A
Explanation: A) $275,000 cash collected - $50,000 A/R earned in 2013 + $35,000 A/R earned in 2014 - $7,000 unearned
Business
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