In the Month of March, Chester Corporation received orders of 156 units at a pri
ID: 2660405 • Letter: I
Question
In the Month of March, Chester Corporation received orders of 156 units at a price of $15.00 for their product Cozy. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 104 units in March and the balance of 52 units in April. They received payment for 52 units in March, 52 units in April, and 52 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
$780 , $780
$1,560 , $780
$2,340 , 0
0 , $2,340
Explanation / Answer
$1,560 , $780
because receiving order doesnot mean the sale is done. the 52 unit is dispatched in april, so we will take sales for april as 52 x 15