Question

In the Month of March, Digby received orders of 107 units at a price of $15.00 for their product Dug. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 107 units in April. They received payment for 54 units in March, and 54 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands) Select: 1Save Answer 0, $1,605 0, $803 $803 , $803 $1,605 , 0

Answer 1

0, $1,605

Step-by-step explanation:

The computation of the revenue recognized in the month of March and in the month of April is shown below:

Since the Digby delivers 107 units in April so now revenue recognized should be in the month of March

But for the month of April, it would be

= 107 units × $15

= $1,605

Hence, the first option is correct