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Problem - Rent Receivable - Hudson Corp. has extra space in its warehouse and agrees to rent it out to Stillwater Company at the rate of $2,000 per month. The space was made available to Stillwater beginning on September 1. Under the terms of the agreement, Stillwater pays the month's rent on the fifth day after the end of the month. Assume that Hudson prepares adjusting entries at the end of each month.
Required -
1. How much revenue should Hudson record in September? How much revenue should Hudson record in October?
2. Prepare the necessary entries on Hudson's books during the month of October.
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