On October 1 2014 Bullseye Company sold 250 000 gallons of
On October 1, 2014, Bullseye Company sold 250,000 gallons of diesel fuel to Schmidt Co. at $3 per gallon. On November 8, 2014, 150,000 gallons were delivered; on December 27, 2014. Another 50,000 gallons were delivered; and on January 15, 2015, the remaining 50,000 gallons were delivered. Payment terms are: 10% due on October 1, 2014, 50% due on first delivery; 20% due on the next delivery; and the remaining 20% due on final delivery.

Required:
What amount of revenue should Bullseye recognize from this sale during 2014 on an accrual basis?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help