ABC Company uses accrual accounting to record revenues and expenses. During September 2021, Tammy Company had the following transactions during September 2021:

a. Sold goods to Laura Ltd. for $8,000.

b. Wrote-off a customer’s account balance of $7,200.

c. Paid employee wages of $1,200. Of this amount, $200 had been earned and recorded in the prior month.

d. Negotiated a contract to deliver $40,000 of goods to Kyla Ltd. by December 2021. Kyla Ltd gave ABC Company an advance deposit of $12,000 in September 2021.

e. Paid Sam Inc., ABC Company’s main supplier, $20,000 for a purchase made in August.

f. Purchased machinery to be used in the business at a cost of $30,000. One third was paid in cash; the company signed a note for the balance, payable in three years, with an annual interest rate of 12%.

g. Purchased a two-year insurance plan which became effective starting from October 1,

2021. The annual insurance premium costs are $3,500.

h. Received an order from Wolver Corp. worth $10,000.

i. A cheque of $400 from Brandon Ltd., a customer of ABC Company was returned from the bank and marked NSF.

j. Issued 50,000 shares to three investors who contributed a total amount of $40,000 in cash, as well as a piece of land valued at $10,000.

What would be the total amount of service revenues for the month if ABC Company uses the accrual basis method?

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