Question

Assume the following scenarios.
Scenario 1: During 2015, The Hubbard Group provides services of $ 900,000 for repair of a state highway. The company receives an initial payment of $ 300,000 with the balance to be received the following year.
Scenario 2: Rolling Stone magazine typically charges $ 80 for a one- year subscription. On January 1, 2015, Herman, age 72, purchases a one- year subscription to the magazine and receives a 15% senior citizen discount.
Scenario 3: During 2015, Waste Management provides services on account for $ 30,000. The customer pays for those services in 2016.
Scenario 4: During 2015, Sysco Corporation sells grocery items to one of its customers for $ 260,000 on account. Cash collections on those sales are $ 180,000 in 2015 and $ 60,000 in 2016. The remaining $ 20,000 is written off as uncollectible in 2016.

Required:
For each scenario, calculate the amount of revenue to be recognized in 2015.



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  • CreatedJuly 15, 2014
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