The Smiths Decided to Open a Bed and Breakfast

Multiple Choice

The Smiths decided to open a Bed and Breakfast.In the first month of operation they collected cash and credit card receipts of $1,800.All rooms rent out at $75 a night and during the month they had 19 room rentals and had received non-refundable deposits of $37.50 each on another five nights of rentals.For two of those deposits the people had failed to show up and the Smiths did not refund the deposits, the other three deposits were for future stays.The appropriate amount for them to recognize as revenue for their first month is:

A) $1,425
B) $1,500
C) $1,800
D) $1,575