Able Inc Has a December 31st Year-End

Multiple Choice

Able Inc has a December 31st year-end.They provided services worth $4,000 in December and were paid $1,000 in cash at that time with the rest due in January.The employees who performed the services were paid $2,500 for their work in January.Under the matching concept how much net income/loss would be reported in December?

A) ($1,500)
B) $1,000
C) $1,500
D) $4,000