In the month of March, Chester Corporation received orders of 182 units at a price of $15.00 for...
Question:
In the month of March, Chester Corporation received orders of 182 units at a price of $15.00 for their product Creak. Chester uses the accrual method of accounting and offers 30-day credit terms. Chester delivers 122 units in March and the balance of 61 units in April. They received payment for 61 units in March, 61 units in April, and 61 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement?
Accrual Accounting:
Accrual Accounting is an accounting method that recognizes revenues in the period they were earned and expenses in the period they were incurred, regardless of when cash was received or paid.
Answer and Explanation: 1
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Amount of revenue recognized for March and April
| Units | Cost per Unit | Total | |
|---|---|---|---|
| March | 122 units | $15.00 | $1,830 |
| April | 61 units | 15.00 | $915 |
Explanation:
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