In which month should Newbury report the $55 revenue on its income statement?
a. September
b. August
c. October
d. July

Jenna Newbury began a music business in July 2018. Newbury prepares monthly financial statements and uses the accrual basis of accounting. The following transactions are Newbury Company’s only activities during July through October:

Transcribed Image Text:

Jul 14 Bought music on account for $65, with payment to the due in 90 days. Aug 3 Performed a job on account for Alanna Turner for $55, collectible from her in 30 days. Used up all the music purchased on July 14. Collected the $55 receivable from Turner. Paid the $65 owed to the supplier from the July 14 transaction. supplier Sep 16 Oct 22