Question
Martinez Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $78,000. Martinez normally
Martinez Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $78,000. Martinez normally sells its riding mowers for $15,600 and its push lawn mowers for $1,040. The contract required the City of Halifax to pay Martinez once all of the merchandise has been delivered to the citys public works yard. Martinezs management does not expect any returns or any issues with payment. Martinez delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered on May 5. Martinez received payment from the city on May 18. Martinezs cost for each riding mower is $10,790, while the push mowers cost the company $670 each.
Determine the amount of revenue that Martinez would be able to recognize in April.
Revenue Recognized | ||
Riding mowers | $ | |
Push lawnmowers | ||
Total | $ |
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