McGucken’s Software sold $1,354,000 of merchandise for cash and had credit sales totaling $2,658,000. It collected cash from customers in the amount of $3,396,000. McGucken’s received merchandise from suppliers invoiced at $1,100,000 and paid suppliers $900,000.

Required
a. Determine the amount of revenue that should be recognized this year.
b. Determine the cost of goods sold (amount) that should be matched with this year’s revenue, assuming no change in inventory (that is, beginning inven- tory equals ending inventory).

Answer rating: 100% (QA)

a To determine the amount of revenue that should be recognized this year we ... View the full answer