In the Month of March, a Corporation received orders of 164 units at a price of
ID: 2528488 • Letter: I
Question
In the Month of March, a Corporation received orders of 164 units at a price of $15.00 for their product. The corporation uses the accrual method of accounting and offers 30 day credit terms. The corporation delivers 110 units in March and the balance of 55 units in April. They received payment for 55 units in March, 55 units in April, and 55 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)
Answer options:
$825 , $825
$1,650 , $825
0 , $2,460
$2,460 , 0
$825 , $825
$1,650 , $825
0 , $2,460
$2,460 , 0
Explanation / Answer
March = 110*15= $1650 April = 55*15= $825 Option 2 is correct