McDonald Music sells used CDs for $3.00 each. During the month of April, McDonald sold 7,990 CDs for cash and 15,530 CDs on credit. McDonald's cash collections in April included $23,970 for the CDs sold for cash, $10,300 for CDs sold on credit during the previous month, and $9,850 for CDs sold on credit during April.

Required:

1. Calculate the amount of revenue recognized in April under cash-basis accounting.
$

2. Calculate the amount of revenue recognized in April under accrual-basis accounting.
$

Answer rating: 100% (QA)

Solution 1 Under the Cash Basis method the revenues includes everything that co... View the full answer