In the Month of March, Baldwin received orders of 117 units at a price of $15.00
ID: 2748277 • Letter: I
Question
In the Month of March, Baldwin received orders of 117 units at a price of $15.00 for their product Buddy. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 117 units in April. They received payment for 59 units in March, and 59 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: 1 $878 , $878 0, $878 0, $1,755 $1,755 , 0
In the Month of March, Baldwin received orders of 117 units at a price of $15.00 for their product Buddy. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 117 units in April. They received payment for 59 units in March, and 59 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: 1 $878 , $878 0, $878 0, $1,755 $1,755 , 0
Explanation / Answer
In month of April, Baldwin deducts it from inventory account and add it to Cost of Goods Sold account.
So the month there is change in COGS account, that month only revenue will be recognised in income statement.
The correct option is the 0,$1755