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Cullumber Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its
Cullumber Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meal kits to the customer's home. Single meal kits can be purchased at grocery stores. Approximately 10% of the kits shipped to grocery stores each month are returned unsold and are then discarded. Cullumber charges the grocery stores $15 for each meal kit. In December 2024, Cullumber began selling three-month subscriptions for $900. Subscriptions are paid in advance and are non-cancellable. Cullumber sold 770 subscriptions on December 1, 2024, which entitle the subscriber to 15 meal kits each month beginning in December 2024. During December, 4,860 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have 30 -day terms of payment with Cullumber. (a1) Determine how much revenue Cullumber Dinner Box would be able to recognize in December 2024. Revenue recognized in December 2024 (Sales by subscription) $ Revenue recognized in December 2024 (Sales at grocery stores) $
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