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Rent to customers who paid in advance has been provided for $7,400. What is the amount of rent received?

1) $7,400
2) Cannot be determined
3) Other options

1 Answer

4 votes

Final answer:

The amount of rent received for advance payment can be inferred as $7,400, as this is the amount that has been provided for, and matches typical accounting practices where revenues are recorded when earned.

Step-by-step explanation:

The question is asking about rent received for customers who have paid in advance. When a customer pays rent in advance, this amount is recorded as revenue when the service (in this case, the rental period) has been provided. Given the information that $7,400 has been provided for, this is the amount of rent received in advance. Without more context or information, it can be inferred that the rent received is $7,400. Therefore, the correct answer from the provided options would be 1) $7,400. This information pertains to accounting principles, where revenues are matched with the period in which they are earned.

User Ammar Bukhari
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