Question

In the Month of March, Chester received orders of 125 units at a price of $15.00 for their product Clack. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 125 units in April. They received payment for 63 units in March, and 63 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order

Answer 1

Answer:

$0

Explanation:

Given that

Number of orders received = 125 units

Price for their product = $15

Number of units delivered = 125 units

Payment received in march in units = 63 units

Payment received in April in units = 63 units

Based on the above information, the revenue recognized on the march income statement is $0 as all units are delivered on April month so no revenue is recognized