In the Month of March, Baldwin received orders of 122 units at a price of $15.00
ID: 2725186 • Letter: I
Question
In the Month of March, Baldwin received orders of 122 units at a price of $15.00 for their product Best. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 122 units in April. They received payment for 61 units in March, and 61 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands) Select: 1Save Answer 0, $915 $1,830 , 0 0, $1,830 $915 , $915 and explain why
Explanation / Answer
The revenues are recognised as and when it is earned.
The revenue is earned in March as the special order is received.
The march revenue should be $ 1830 (122 units*15)
April revenue is 0
The correct option is B. $ 1830,0