On 1 March, a company has paid in advance $3600 for 12 months’ travel costs. It also owes $180 for a hotel bill. In March, it settles the outstanding hotel bill and pays a further $700 for airline tickets for the month. At 31 March, it still owes $220 for a hotel bill. What is the correct travel cost to show in the income statement for March?
- A$920
- B$1220
- C$1400
- D$4520