Question 9 options: The University of Miami sold $250,000 worth of season ticket
ID: 2493265 • Letter: Q
Question
Question 9 options: The University of Miami sold $250,000 worth of season tickets for five home football games. The university collected $80,000 cash for payment for the tickets during September; $60,000 cash for payment for the tickets in October; and $110,000 cash for payment for the tickets in November. Two home games were played in September, one home game was played in October, and two home games were played in November. All home games at the University of Miami are sell-outs. Using the realization principle, calculate the amount of revenue the university should record in September related to the ticket sales.Explanation / Answer
In the concept of the realization principle, revenue is realized the moment that a good has been sold or, in the case of a service, the revenue is realized the moment the service has been entirely fulfilled. Assume that, Amount to be recd. From sale of tickets of all the matches are equal So, Amt. to be recd from Sale of Tockets from each match = $250,000 / 5 Matches = $50,000 per match So, Revenue from the sale of tickets per match to be recognized = $50,000 Revenue recognized in the M/o sep. = 2 Matches X $50000 = $100,000