Cornerstone Exercise 3-12 (Algorithmic) Accrual- and Cash-Basis Revenue

McDonald Music sells used CDs for $3.00 each. During the month of April, McDonald sold 8,990 CDs for cash and 16,200 CDs on credit. McDonald's cash collections in April included $26,970 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:

1. Calculate the amount of revenue recognized in April under cash-basis accounting.

2. Calculate the amount of revenue recognized in April under accrual-basis accounting.