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[SOLVED] In the Month of March, Digby Corporation received orders of 145 units at a price of $15.00 for their product Daze.

In the Month of March, Digby Corporation received orders of 145 units at a price of $15.00 for their product Daze. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 96 units in March and the balance of 48 units in April. They received payment for 48 units in March, 48 units in April, and 48 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)

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  •  $1,440 , $720
  •  $720 , $720
  •  $2,175 , 0
  •  0 , $2,175



honeyd


20-04-21 | 21:39:35

for accrual revenue and expenses are recorded when transaction occurs
March delivered unit cost =96*15=1440
April delivery value=48*15=720

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