Cash rent received adjusts due amount for prepaid and arrears Steps:

• Assume monthly rent $300 (matches prepaid amount for one month).
• Calculate ending arrears: 2 months × $300 =$600.
• Total due for year: $3000.
• Cash received during year: $3000 (due) -$300 (beginning prepaid) - $600 (ending arrears) =$2100.

Why A is correct:

• Subtracts beginning prepaid (cash received prior to year) and ending arrears (cash not yet received) from annual due, per cash flow accounting for rent collections.

Why the others are wrong:

• B: Equals due amount but ignores prepaid already collected earlier and arrears unpaid.
• C: Incorrectly adds prepaid and arrears (as $300 +$600) to due, inflating cash received.
• D: Grossly overstates by adding large unrelated amounts without basis.

Final answer: A