B-Rides, Incorporated, manufactures bicycles that can fold to a compact size. On March 15, the company receives a large order from a big box specialty retailer. Due to the size of the order, B-Rides required this customer to pay $1,000 immediately, reflecting a 10 percent down payment. The remaining balance of $9,000 was received from the customer in April (the following month) at delivery. Required: How much revenue should be recognized in March? How much deferred revenue should be recognized in March? How much revenue should be recognized in April? How much deferred revenue should be recognized in April?

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To determine how much revenue should be recognized in March and April we need to follow the steps be... View the full answer