Beryl Strauss began a music business in July 2014. Strauss prepares monthly financial statements and uses the accrual base of accounting. The following transactions are Strauss Company's only activities during July through October.
Jul l4 Bought music on account for $25, with payment to the supplier due in 90 days.
Aug3 Performed a job on account for Jimmy Jones for $40, collectible from Jones in 30 days. Used up all the music purchased on July 14,
Sep l6 collected the $40 receivable from Jones.
Oct 22 paid the $25 owed to the supplier from the July 14 transaction.
In which month should Strauss report the $40 revenue on its income statement?
a. July
b. September
c. October
d. August