McDonald Music sells used CDs for $2.00 each. During the month of April, McDonald sold 8,750 CDs for cash and 15,310 CDs on credit. McDonald’s cash collections in April included the $17,500 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:
Calculate the amount of revenue recognized in April under
(a) The cash-basis of accounting
(b) The accrual-basis of accounting.