In the Month of March, Baldwin Corporation received orders of 169 units at a pri
ID: 406498 • Letter: I
Question
In the Month of March, Baldwin Corporation received orders of 169 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 112 units in March and the balance of 56 units in April. They received payment for 56 units in March, 56 units in April, and 56 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) $2,535 , 0 $840 , $840 0 , $2,535 $1,680 , $840 In the Month of March, Baldwin Corporation received orders of 169 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 112 units in March and the balance of 56 units in April. They received payment for 56 units in March, 56 units in April, and 56 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) $2,535 , 0 $840 , $840 0 , $2,535 $1,680 , $840Explanation / Answer
169 units
Price $15.
30 day credit term
On accrual method the general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received).
On march Baldwin delivers 112 units (112*$15 = $1680)
On march Baldwin deliveres 56 units (56*$12 = $840)
Answer:
$1,680 , $840