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11 August, 17:34

On October 1, 2018, Acme Fuel Co. sold 100,000 gallons of heating oil to Sparky Co. at $3 per gallon. Fifty thousand gallons were delivered on December 15, 2018, and the remaining 50,000 gallons were delivered on January 15, 2019. Payment terms were 50% due on October 1, 2018, 25% due on first delivery, and the remaining 25% due on second delivery. What amount of revenue should Acme recognize from this sale during 2019?

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  1. 11 August, 18:01
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    sales revenue for this contract to be recognize in 2018: 150,000

    Explanation:

    On 2019 the company will recognize revenue based on accrued revenue. It will consider the delivery date of the goods rather than payment.

    During 2018 it delivers 50,000 gallons at $ 3 each

    In total: 50,000 gallons x $ 3 = 150,000 accrued revenue.
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Home » Business » On October 1, 2018, Acme Fuel Co. sold 100,000 gallons of heating oil to Sparky Co. at $3 per gallon. Fifty thousand gallons were delivered on December 15, 2018, and the remaining 50,000 gallons were delivered on January 15, 2019.
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