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[SOLVED]In the Month of March, Chester received orders of 147 units at a price of $15.00 for their product Coat, and in April receives an order for 37 units of their product Coat at $15.00.

In the Month of March, Chester received orders of 147 units at a price of $15.00 for their product Coat, and in April receives an order for 37 units of their product Coat at $15.00. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 0 units in March, 147 units in April and 37 units in May. They received payment for 147 units in April, and payment for 37 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)

Select : 1

Submit Answer

  •  $2,205 , $551
  •  $919 , $919
  •  $2,756 , 0
  •  0, $2,205



honeyd


17-03-21 | 06:55:54

accrual method means revenue is recorded when the transaction takes place rather than when payment is made.
Chester deliver 0 units in march so there was no transaction
delivered 147 units in April totaling to 2205
delivered 37 units in may amounting to 555
the correct answer is;
0, $2,205

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