Exercise $1-8($Algo$)$ Applying measurement principle and revenue recognition principle LO C$2$

a$.$ Byrde Company purchased a truck. The seller asked for $$12,400,$ but Byrde paid only $$11,400$ after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $$16,400.$ What amount does Byrde record on its financial 'statements for the truck?

b$.$ Snell Company performs services for a client in May and bills the client $$2,400.$ In June, Snell receives a partial payment of $$1,000$ cash. In July, the remaining $$1,400$ cash is received. Determine the monthly revenue recorded in May, June, and July applying revenue recognition principle.

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Requirest A

Required B

Byrde Company purchased a truck. The seller asked for $$12,400,$ but Byrde paid only $$11,400$ after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $$16,400.$ What amount does Byrde record on its financial statements for the truck?

Financial statement amount