In the Month of March, Chester Corporation received orders of 137 units at a price of $15.00 for their product Cell. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 92 units in March and the balance of 46 units in April. They received payment for 46 units in March, 46 units in April, and 46 units in May. How much revenue is recognized on the March income statement from this order

Question

Business

Nathanial Rasmussen

14 August, 23:47

In the Month of March, Chester Corporation received orders of 137 units at a price of $15.00 for their product Cell. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 92 units in March and the balance of 46 units in April. They received payment for 46 units in March, 46 units in April, and 46 units in May. How much revenue is recognized on the March income statement from this order

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Nathan Rice · Answer 1

earned revenue for March 1,380 dollars

Explanation:

For March, the revenue recognize will be for the 92 units delivered. As the remainder are unrealized. The cleint can cancel the orderor the company could not delvier the units. Be must remember the accounting follow principles of conservatisims for revenue recognition.

the amount will be 92 units x 15 dollars each = 1,380 dollars

The payment dates are irrelevant for accrual basis.