Following Month income statement

"Customers are billed when serviced and settle their accounts in the following month."

I am supposed to construct an income statement for three straight months but I do not know where to put the revenue. So for instance the company made $15,000 in revenue for April, would this go on the income statement dated April 31st OR would it go into the income statement for May because the directions say 'the accounts are settled in the following month'

Thanks! :)


If you're using the accrual basis then the revenues and expenses are matched to the time periods where the actual revenue/expense items were incurred.
You wouldn't use the entire 15,000 for Apr unless the whole amount were earned in that period.
If you were using the cash basis those items would be recognized when they were incurred regardless of whether they were incurred from some other period. Be sure you know which basis is being used. It makes a BIG difference.

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