In the month of March, Digby received orders of 104 units at a price of $15.00 for their product Dell. Digby uses the accrual method of accounting and offers 30-day credit terms. Digby delivers 104 units in April. They received payment for 52 units in March and 52 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)
Added by Alfonso E.
Step 1
Under the accrual method, revenue is recognized when it is earned, regardless of when the payment is received. In this scenario, revenue is recognized when the product is delivered. Show more…
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