Sound Sleeper Ltd. manufactures and sells mattresses to retailers across Canada. In 2020, Sound Sleeper signed a two-year contract
with Zzz Ltd. to supply it with 40,200 mattresses at a price of $100 per unit. Sound Sleeper's cost to manufacture a mattress is $26.
Sound Sleeper provides Zzz with 30-day credit terms from the date of delivery. The following schedule summarizes the production,
delivery, and payments in relation to the contract:
2020
2021
Total
Mattresses delivered
14,700
25,500
40,200
Manufacturing costs incurred
$382,200
$663,000
$1,045,200
Cash payments received
$1,371,000
$2,508,000
$3,879,000
Determine how much revenue Sound Sleeper would be able to recognize in 2020 and 2021.
Revenue recognized on 2020
$