McGuckens Software sold $1,354,000 of merchandise for cash and had credit sales totaling $2,658,000. It collected cash
Question:
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 inventory equals ending inventory).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting Reporting And Analysis
ISBN: 9780324149999
6th Edition
Authors: Earl K. Stice, James Stice, Michael Diamond, James D. Stice
Question Posted: