Calculate the amount of revenue to recognize (LO5–1)
Assume the following scenarios.
Scenario 1: During 2018, The Hubbard Group provides services of $900,000 for repair of a state highway. The company receives an initial payment of $300,000 with the balance to be received the following year.
Scenario 2: Rolling Stone magazine typically charges $80 for a one-year subscription. On January 1, 2018, Herman, age 72, purchases a one-year subscription to the magazine and receives a 15% senior citizen discount.
Scenario 3: During 2018, Waste Management provides services on account for $30,000. The customer pays for those services in 2019.
Scenario 4: During 2018, Sysco Corporation sells grocery items to one of its customers for $260,000 on account. Cash collections on those sales are $180,000 in 2018 and $60,000 in 2019. The remaining $20,000 is written off as uncollectible in 2019.
Required:
For each scenario, calculate the amount of revenue to be recognized in 2018.
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Financial Accounting
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- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT