Question

In: Operations Management

In the Month of March, Digby Corporation received orders of 180 units at a price of...

In the Month of March, Digby Corporation received orders of 180 units at a price of $15.00 for their product Dome. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 120 units in March and the balance of 60 units in April. They received payment for 60 units in March, 60 units in April, and 60 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)
Select: 1
$1,800 , $900
0 , $2,700
$2,700 , 0
$900 , $900

Solutions

Expert Solution

Revenue in Income statement is based on total payment received on that month

As the payment receipt for March and April is 60 units each, the revenue for both month will be = Units*Price per unit = 60*15 = 900 $

Ans = 900, 900

keosha answered 2 years ago
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