In the month of March, Baldwin corporation received orders of 169 units at a price of $15 for the product boat. Baldwin uses the

Question

3 years ago

11

In the month of March, Baldwin corporation received orders of 169 units at a price of $15 for the product boat. 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 receive payments of 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

Business

1 answer:

Igoryamba · Answer 1 · 2022-04-21T12:17:51+03:00

Answer: $1,680

Explanation:

According to the Accrual method, revenue from sales is recognized when the obligations of the sale have been fulfilled. In other words, when the goods are delivered.

In March, Baldwin delivers 112 units so this is the units that will be recognized for revenue:

= 112 * 15 per unit

= $1,680