Question

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

Answer 1

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.