Question

On September 25, 2014 Colson Corp. sold 200,000 widgetrons to Cavanaugh Corp at $5 per unit. Half of the units were delivered on November 15, 2014, and the remaining 100,000 units were delivered on January 20, 2015. At the time of sale Cavanaugh paid 40% of the contract price and agreed to pay the rest in equal installments on the two delivery dates. What amount of revenue should Colson recognize from this sale in 2014?

Answer 1

On September 25.2014 Colson Corp. sold 200.000 widgetrons for 5$ per unit.
200.000*5$=1.000.000$. Same day company was paid for 40% which is 400.000$.
The rest of the money he get paid in two equal parts on November 15.2014 and January 20.2015. So Calson Corp. was paid 300.000$ on November 15.2014 and 300.000$ on January 20.2015.