# 1- This problem is worth 5 points. Based on the information listed below, determine whether revenue is earned or expenses incurred for the period indicated. Circle R for revenue, NR if not revenue; E for expenses, NE if not an expense.

Example: ABC company delivered goods to a customer in the amount

of $3,000. The customer promises to pay in 30 days.

R NR

Example: ABC paid $500 for repairs which took place in the previous month.

E NE

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During the month of July, Argon, Inc. carried out the following activities:

1) Services of $2,500 were provided a customer in July. Customer will pay in August.

R NR

2) Received a $3,000 deposit for work to be performed in August.

R NR

3) Paid the August rent of $5,000 on July 5^th.

E NE

4) Received $2,000 from a customer for services rendered in June.

R NR

5) The cost of goods shipped to a customer on July 15^th, in the amount

$1,500, will be paid to the vendor in August.

E NE