Question

In the Month of March, Chester received orders of 81 units at a price of $15.00 for their product Creak. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 81 units in April. They received payment for 41 units in March, and 41 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order

Answer 1

Chester Corporation

Revenue for March Income Statement for this order = $0

Revenue for April Income Statement for this order = $1,215

Step-by-step explanation:

a) Data and Calculations:

March: orders of 81 units at a price of $15 received = $1,215

Credit terms = 30 days

April, delivery of 81 units

March, payment for 41 units received

April, payment for 41 units received

In the March income statement, no revenue is recognized on the March Income Statement from this order because the delivery is for April. All revenue will be accounted for in April.