Question

In the Month of March, Chester Corporation received orders of 151 units at a price of $15.00 for their product Cedar. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 100 units in March and the balance of 50 units in April. They received payment for 50 units in March, 50 units in April, and 50 units in May. How much revenue is recognized on the March income statement from this order

Answer 1

$1,500

Step-by-step explanation:

The computation of the revenue recognized on the March income statement is shown below:

= Number of units delivered × price per unit

= 100 units × $15

= $1,500

Since 100 units is delivered on the month of march so the same is to be considered at $15

Therefore, the $1,500 revenue is to be recognized

All other units are to be ignored