In the month of March the Chester Corporation received and delivered orders of 182,000 units at a price of $15.00 for revenue of $2.730mil for their product Cedar. Chester uses the accrual method of accounting and offers 30 day credit terms. By the end of May Chester had collected payments of $2.730mil for the March deliveries. How much of the collected $2.730mil should Chester show on the March 31st income statement and how much on the May 31st income statement?

Question

05-12-2021
Business

Answered

IDNLearn.com provides a collaborative environment for finding accurate answers. Ask anything and receive prompt, well-informed answers from our community of knowledgeable experts.

In the month of March the Chester Corporation received and delivered orders of 182,000 units at a price of $15.00 for revenue of $2.730mil for their product Cedar. Chester uses the accrual method of accounting and offers 30 day credit terms. By the end of May Chester had collected payments of $2.730mil for the March deliveries. How much of the collected $2.730mil should Chester show on the March 31st income statement and how much on the May 31st income statement?

Sagot :

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Thank you for visiting IDNLearn.com. We’re here to provide clear and concise answers, so visit us again soon.

What Was The Main Issue Relating To Reconstruction That Divided Republicans At The End Of The Civil War?If You Had Been A Member Of Congress At The Time, What A

Read The Passage Form The Crab That Played With The Sea What Is The Tone In This Passage

Which Best Explains The Benefit Of Using An Advanced Search For This Information?A. It Will Eliminate Lost Time Finding General Information About Species Of Bee

How Can Clearly Defined And Strictly Enforced Property Rights Increase Economic Growth In A DVC?a. They Encourage Investment By Firms In IACs. B. They Ensure Th

Which Expresses 0.045 As A Percent?A. 4.5%B. 0.045%C. 0.45%D. 45%

Read The Chemical Equation:[tex]\[ 2 H_2 + O_2 \rightarrow 2 H_2O \][/tex]Which Of The Following Statements Would Be Correct If One Mole Of $ H_2 $ Was Used I

Select The Correct Answer.What Is An Example Of "trust-busting" That Theodore Roosevelt Enforced?A. He Supported The Northern Securities Company.B. He Created A

RESPONDA LAS PREGUNTAS 9 Y 10 DE ACUERDO CON LA SIGUIENTE INFORMACIÓNLa Siguiente Tabla Presenta El Valor De La Masa Molar De Dos Sustancias [tex]$V$[/tex] Y [t

Study This Image Of A Geologic Time Scale.\begin{tabular}{|c|c|c|c|}\hline ERA & PERIOD & \begin{tabular}{l} MILLIONS OF \\YEARS AGO\end{tabular} &

Based On "Climate Change: An Overview," What Are The Effects Of Global Climate Change? Check All That Apply.☐ Increasing Temperatures In The Arctic☐ More-freque

Bhavish524idn Bhavish524idn · Answer 1 · 2021-12-05T23:35:45-05:00

If all units were delivered by March 31st based on revenue recognition rules app 2.730 is recognizedas revenue in March with Dr accounts receivable and credit revenue.

When the funds are collect in may the accounts receivable is cleared to cash/Bank

Dr Bank and Cr accounts receivable

How ever since Chester Corp offers only 30 day credit terms the receivable is 30 days late they can Charge late payment fees and recognize the late fees as revenue in May i.e. the month the late fees is recognized

Sagot :

Other Questions