33.5k views
0 votes
Wise company purchased 10 calculators for $20 each. One half on May 14 and the other half on May 22 all on account. Wise sold 8 of the calculators on May 25 for $30 each. It received payment for 6 of them on May 30 and payment for the other 2 on June 4. Wise paid the supplier for 5 of the calculators on May 21. How much revenue should Wise recognize during May?

A) $120
B) $180
C) $240
D) $80

User Agreensh
by
7.6k points

1 Answer

5 votes

Final answer:

Wise company should recognize $240 in revenue during May.

Step-by-step explanation:

Wise company should recognize $240 in revenue during May. This is calculated by multiplying the number of calculators sold (8) by the selling price per calculator ($30). Therefore, 8 x $30 = $240. It is important to note that revenue is recognized when the sale is made, regardless of whether payment has been received or not.

User Cypheon
by
9.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.