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Question - On the last day of December 2021, Coaster Trucks entered into a transaction that resulted in a receipt of $300,000 cash in advance related to services that will be provided during January 2022. During December of 2021, the company also performed $165,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company had recorded service revenue of $1,425,790 as of December 31, 2021. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected.
If Coaster Trucks makes the appropriate adjusting entry, how much service revenue will be reported on the income statement for the accounting period ending December 31, 2021?
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