Question

Women's Workout Warehouse gains a client who prepays $ 390 for a package of six physical training sessions. Women's Workout Warehouse collects the $ 390 in advance and will provide the training later. After four training​ sessions, what should Women's Workout Warehouse report on its income statement assuming it uses the accrual basis accounting​ method?

Answer 1

Answer:

$260

Explanation:

The computation is shown below:

There is $390  for a package of six physical training sessions

So for one package, it would be

= $390 ÷ 6

= $65

For four training sessions, the service revenue would be

= $65 × 4 training​ sessions

= $260

The service revenue is $260

And the unearned service revenue, it would be

= $390 - $260

= $130

Answer 2

Answer:    /\

$260.         |    

Explanation: that is right