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Korolek [52]
3 years ago
7

In the Month of March, Chester Corporation received orders of 137 units at a price of $15.00 for their product Cell. Chester use

s the accrual method of accounting and offers 30 day credit terms. Chester delivers 92 units in March and the balance of 46 units in April. They received payment for 46 units in March, 46 units in April, and 46 units in May. How much revenue is recognized on the March income statement from this order
Business
1 answer:
scoray [572]3 years ago
6 0

Answer:

earned revenue for March 1,380 dollars

Explanation:

For March, the revenue recognize will be for the 92 units delivered. As the remainder are unrealized. The cleint can cancel the orderor the company could not delvier the units. Be must remember the accounting follow principles of conservatisims for revenue recognition.

the amount will be 92 units x 15 dollars each = 1,380 dollars

The payment dates are irrelevant for accrual basis.

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Answer:

1. A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin ratio equals:______

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Gross profit margin is calculated by dividing the gross profit by the sales and multiplying by 100.  In this case, the gross profit is $212,800 ($760,200 - $547,400).  The amount, $212,800, then divided by $760,200 and multiplied by 100 to obtain approximately 28%.

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