ABC Collects Rents from Several Properties

Multiple Choice

ABC collects rents from several properties.Prior to recording adjusting entries,assume the Rent Income account has a credit balance of $8000.Two adjustments are to be made at the end of the financial year 1) an accrual for accrued rent income of $600 2) the Unearned Rent Income account is to be decreased by $200.After processing these adjusting entries the amount of Rent Income to be shown in the income statement is:

A) $8800
B) $8400
C) $7600
D) $7200