Given only the following information,how much revenue would L Ltd recognise in May 2012?
(i)A $160 000 deposit was received from a client in May for work to be carried out in June.
(ii)Credit sales of $300 000 made in May,with only $100 000 to be collected in May.
(iii)$40 000 was collected in May from customers for April sales.
(iv)Sold goods were valued at $60 000 on last day of May.Client to be invoiced in early June.
(v)A contract was signed to deliver client goods valued at $80 000 in June.
A) $260 000
B) $360 000
C) $400 000
D) $160 000.

Question

Quizplus · Accepted Answer

Revenue is recognized when earned, not necessarily when cash is received. In May, L Ltd would recognize $300,000 from credit sales made in May. The deposit for June work, collections from April sales, and goods to be invoiced in June do not count as May revenue.

Given Only the Following Information,how Much Revenue Would L Ltd