Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I want to ve4rify I did this correctly. If not, please explain why. According to the revenue recognition principle, revenues should be recognized when or
I want to ve4rify I did this correctly. If not, please explain why.
According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer. For many businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September: Required: For each of the transactions, if revenue is to be recognized in September, indicate the amount. Amount a. $ 6 $ 2,800 $ 217,500 Activity A customer paid $6 cash for 6 song files from Musica's store. Answer from Musica's standpoint. Best Flooring provided a carpet installation for $2,800 cash. A comparable installation b. from other companies costs $3,800. Span Cable is scheduled to install digital cable at 1,500 Austin area homes next c. week. The installation charge is $145 per home. The terms require payment within 30 days of installation. Answer from Span Cable's standpoint. Span Cable completed the installations described in (c). Answer from Span Cable's d. standpoint Span Cable received payment from customers for the installations described in (c). Answer from Span Cable's standpoint. A customer purchased a ticket from QuickAir in September for $375 cash to travel in f. December. Answer from QuickAir's standpoint. $ 217,500 e. $ 0 $ 0Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started