1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
raketka [301]
3 years ago
6

Whispering Company sells goods that cost $301,000 to Ricard Company for $402,000 on January 2, 2020. The sales price includes an

installation fee, which has a standalone selling price of $37,000. The standalone selling price of the goods is $365,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
Whispering prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Whispering recognize related to its sale to Ricard
Business
1 answer:
Jobisdone [24]3 years ago
7 0

Answer:

The amount of revenue to be recognized at 31st March is $383500

Explanation:

The revenue amount that should be recognized in the income statement as at March 31,2020 is the  sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.

Hence, the amount of revenue as at 31st March is calculated thus:

Sales price                                                                     $365000

Installation fee for 3 months(3/6*$37000)                   <u>$18500</u>

Total revenue as at 31st March                                    $ 383,500

The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months

You might be interested in
Sheridan Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 485 units that
Kipish [7]

Answer:

Value of closing inventory = $25771.04

Explanation:

To calculate the value of ending inventory under a periodic average cost method, we will calculate the average price per unit of inventory at the end of the month. To calculate the average price per unit, we simply divide the total cost of the inventory by the total number of units for the month.

Average cost per unit = Total cost of all units for the month / Total units available for the month

<u />

<u>Total cost of all units:</u>

Beginning inventory (485 * 66)            32010

Purchase 1     (725 * 69)                        50025

Purchase 2     (364 * 71)                    <u>    25844</u>

Total                                                       107879

<u>Total Units</u>

Beginning Inventory     485

Purchase 1                     725

Purchase 2                    <u>364</u>

Total                              1574

Average cost per unit =   107879 / 1574

Average cost per unit = $68.54

Units of closing inventory = 1574 - 1198     =   376 units

Value of closing inventory =  376 * 68.54

Value of closing inventory = $25771.04

6 0
3 years ago
During world war i the u.s. military developed the _____ to screen millions of recruits.
hichkok12 [17]
Army Alpha and Army Beta Test
7 0
3 years ago
Read 2 more answers
The Math department also purchased a printer. After 4 years, it will have a salvage value of $200. A new printer is expected to
Aleksandr [31]

Answer:

determine the size of payments.

$202,42

Explanation:

Expected cost              2000

Salvage value old printer 200

         Cost requirement        1800

 

FVOrdinary Annuity​=C*(1+i)n-1/i  

1800=c*(1+3%)>8-1/i  

C=202,42  

N Monthly            % VF

0 202,4214999 1,00 202,42

1 202,4214999 1,06 214,57

2 202,4214999 1,12 227,44

3 202,4214999 1,19 241,09

4 202,4214999 1,26 255,55

5 202,4214999 1,34 270,89

6 202,4214999 1,42 287,14

7 202,4214999 1,50 304,37

6 0
3 years ago
Restricting imports of Brazilian shoes will__________.
KatRina [158]

Answer:

a. raise the price of both Brazilian and domestically produced shoes

Explanation:

Restricting imports of Brazilian shoes will raise the price of both Brazilian and domestically produced shoes

5 0
2 years ago
1.<br> The price of labor is called<br><br><br> costs<br><br> demands<br><br> rates<br><br> wages
olya-2409 [2.1K]

Wages

The cost of labour is the sum off all wages paid to employees as well as the cost of employee benefits and payroll taxes paid by an employer.

The cost of labour is broken in direct and indirect cost.

6 0
3 years ago
Read 2 more answers
Other questions:
  • James Corporation is an agent of Alten Corporation. Their agreement specifies that James will receive a commission equal to 15%
    13·1 answer
  • On January 1, 2017, Marin Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide t
    12·1 answer
  • A soft drink bottler incurred the following factory utility cost: $3,711 for 1,250 cases bottled and $3,790 for 1,800 cases bott
    12·1 answer
  • The value of United States currency is based on...... What?
    14·1 answer
  • A sporting goods store purchased $10,150 worth of ski boots in October. The store had $4,350 of ski boots in inventory at the be
    9·1 answer
  • Billie jean has $120 to spend and wants to buy either a new amplifier for her guitar or a new mp3 player to listen to music whil
    11·1 answer
  • A student copies information from a website into a term paper without giving credit. This action is most strongly related to whi
    11·2 answers
  • The financial statements of New World, Incorporated, provide the following information for the current year: December 31 January
    15·1 answer
  • A manufacturer of industrial grade gas handling equipment wants to have $725,000 in an equipment replacement contingency fund 10
    13·1 answer
  • if an investor with no other positions buys 2 dwq jun 45 calls at 3, and he exercises the calls when the stock is trading at 47.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!