On June 14, 2019, Montgomery Oil & Chemicals sold 185,000 gallons of oil and other lubricants to Qumicos Industriales Co. at a price of $1.90 per gallon. On August 23, 2019, 65,000 gallons were delivered; On October 8, 2019, 25,000 gallons were delivered; On December 5, 50,000 gallons were delivered and on February 12, 2020, the remaining 45,000 gallons were delivered. The payment terms were: 10% to be paid on June 14, 2019, 40% to be paid in the first delivery, 25% in the next delivery, 15% in the next delivery and the remaining 10% in the final delivery.

Exercise Requirement: 

Using an accrual basis of accounting, what amount of revenue, during the year 2019, should Montgomery Oil & Chemicals recognize from this sale?

Answer rating: 100% (QA)

Montgomery Oil Chemicals Revenue Recognition 2019 Accrual Basis Given Information Total gallons sold ... View the full answer