Total Fitness Plus gains a chent who prepays 680 for a packa

Total Fitness Plus gains a chent who prepays $680 for a package of six physical training sessions Total Fitness Plus collects the $860 in advance and will provide the traning later After tour training sessions, what should Total Fitness Plus report on ts income statement assuming t uses the accrual basis accounting method? OA. Servce revenue of$660 B. Service revenue of $440 O C. Cash of $220 D· Unearned service tevenue of $440

Solution

B. Service revenue of $440.

Total Fitness Plus should report service revenue of $440($660 * 4/6) on its income statement assuming it uses the accrual basis accounting? method.