Over the winter months, Lush Lawns Co. pre-sells fertilizing and weed control lawn services to be performed
Question:
Over the winter months, Lush Lawns Co. pre-sells fertilizing and weed control lawn services to be performed from May through September, inclusive. If payment is made in full by April 1, a 5% discount is allowed. In March, 350 customers took advantage of the discount and purchased the summer lawn service package for $760 each. In June, 300 customers purchased the package for $800, and in July, 100 purchased it for the same price. For customers who pay after May 1, service starts in the month the customer makes the payment.
Instructions
How much revenue should be recognized by the Lush Lawns Co. in each of the months of March, April, May, June, July, August, and September? Explain.
Step by Step Answer:
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak