Sparkling Pools performed $2,400 of pool maintenance services during July; the customers had paid in advance for these services in June. The company performed $1,500 of pool maintenance services during July and collected payment from those customers in August. Also, during July, the company accepted an order to perform $750 of pool maintenance services in August; the customers will pay for these services in August. The company uses accrual basis accounting. The Service Revenue account should be credited for:
A. $2,400 in June, $1,500 in July, and $750 in August.
B. $0 in June, $2,400 in July, and $2,250 in August.
C. $2,400 in June, $0 in July, and $2,250 in August.
D. $0 in June, $3,900 in July, and $750 in August.
Answer: D
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