Answer:
$8,565
Explanation:
Sales revenue of the year 2015 = $30,010
Accrued royalty revenue on December 31, 2015 = 30,010 x 10%
= $3,001
Evan received royalties of $2,613 on April 1, 2016.
Hence, royalty receivable for the year ended December 31, 2015 = 3,001- 2,613
= $388
On October 1, 2016, Evan received royalties of $4,631.
Thus, royalty received for the first half of the year 2016 = 4,631 - 388
= $4,243
The 2nd half of 2016 sales were estimated to be $43,220
Hence, royalty for the second half of the year 2016 = 43,220 x 10%
= $4,322
Evan's 2016 royalty revenue = Royalty revenue for the first half + Royalty revenue for the second half
= 4,243 + 4,322
= $8,565
