Accrual- and Cash-Basis Revenue Magnani Music sells used CDs for ($ 2.00) each. During the month of

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Accrual- and Cash-Basis Revenue Magnani Music sells used CDs for \(\$ 2.00\) each. During the month of April, Magnani sold 8,750 CDs for cash and 15,310 CDs on credit. Magnani'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.

\section*{Required:}

Calculate the amount of revenue recognized in April under

(a) the cash basis of accounting and

(b) the accrual basis of accounting.

\section*{Cornerstone Exercise

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Related Book For  book-img-for-question

Cornerstones Of Financial Accounting

ISBN: 9780176707125

2nd Canadian Edition

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

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