Question
In the Month of March, Digby received orders of 171 units at a price of $15.00 for their product Dot, and in April receives an
In the Month of March, Digby received orders of 171 units at a price of $15.00 for their product Dot, and in April receives an order for 43 units of their product Dot at $15.00. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 0 units in March, 171 units in April and 43 units in May. They received payment for 171 units in April, and payment for 43 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)
a) $2,565, $641 b) $3,206, $0 c) $0, $2565 d) $1,069, $1069
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