In the Month of March, Digby received orders of 120 units at a price of $15.00 f
ID: 2799930 • Letter: I
Question
In the Month of March, Digby received orders of 120 units at a price of $15.00 for their product Daze. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 120 units in April. They received payment for 60 units in March, and 60 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 0, $1,800 $900 , $900 0, $900 $1,800 , 0 1494 8100 618521 923411-8 8724515 2526204 9019 9032 3778 4814 37$1 $$ 1 120092-1 800021 192621-1 1098355 8522279 59424$ 8. $2$1$ $ 000000-0 000000-0 6501 9099 56004 76002 492949-9 8 4 69 Rtgnwsaeeg sen 9469 0528 7330 060051-2 660058-9 692930-3 $ 1, $ $ 6, 3, 1998 350064-3 580026-1 192441-5 8 346 5, 3, $ 9, 2, $ 1, 2, $ 7. 2989 350097 580048-3 75s4 acao u 576 0326 32s5 700030 0$0023 9 2034-4 aexa 7816 8740 2611 300026-1 28 - ti nt h gExplanation / Answer
Order received 120 Units Price 15 per unit Total revenue 1800 Since it is accrual principle the revenue should be matched with the expense so entite thing will be put in march and not when cash is actually paid So the answer should be March -1800 April-'0