What amount of revenue has Rehabilitation, Inc. earned in December for the job completed at the end of the month?

To determine the amount of revenue earned by Rehabilitation, Inc. in December for the job completed at the end of the month, it’s essential to understand the matching principle in accounting. This principle states that revenues should be recognized in the period they are earned, regardless of when the cash is received.

In this scenario, even though the job was completed at the end of December, the company is still able to recognize revenue based on the work performed up to that point. If the completion of the job is noted to have generated revenue of $3,000, then that amount reflects the earnings attributable to the services delivered during December.

Furthermore, looking at the nature of jobs completed within a month, if the company only completed jobs worth $3,000 by the end of December, then that is the amount that should be recorded as revenue for that month. Recognizing this revenue aligns with the timing of the service delivery and reflects the company’s performance accurately for December.