Question
In the month of March the Digby Corporation received and delivered orders of 145,000 units at a price of $15.00 for revenue of $2.175mil for
In the month of March the Digby Corporation received and delivered orders of 145,000 units at a price of $15.00 for revenue of $2.175mil for their product Dome. Digby uses the accrual method of accounting and offers 30 day credit terms. By the end of May Digby had collected payments of $2.175mil for the March deliveries. How much of the collected $2.175mil should Digby show on the March 31st income statement and how much on the May 31st income statement?
Select : 1
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1.087mil in March; $1.087mil in May
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$2.175mil in March; $0 in May
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$0 in March; $2.175mil in May
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$0.718mil in March; $1.457mil in May
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