Accrual- and Cash-Basis Revenue McDonald Music sells used CDs for $2.00 each. During the month of April, McDonald sold 9,600 CDs for cash and 15,740 CDs on credit. McDonald's cash collections in April included $19,200 for CDs sold for cash, $10,300 for CDs sold on credit during the previous month, and $9,850 for CDs sold on credit during April. Required: 1. Calculate the amount of revenue recognized in April under cash-basis accounting. X 2. Calculate the amount of revenue recognized in April under accrual-basis accounting. X

Accrual- and Cash-Basis Revenue McDonald Music sells used CDs for $2.00 each. During the month of April, McDonald sold 9,600 CDs for cash and 15,740 CDs on credit. McDonald's cash collections in April included $19,200 for CDs sold for cash, $10,300 for CDs sold on credit during the previous month, and $9,850 for CDs sold on credit during April. Required: 1. Calculate the amount of revenue recognized in April under cash-basis accounting. X 2. Calculate the amount of revenue recognized in April under accrual-basis accounting. X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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