What amount of revenue should acme recognize from this sale

Assignment Help Financial Accounting

Reference no: EM131255183

On October 1, 20X1, Acme Fuel Co. sold 100,000 gallons of heating oil to Karn Co. at $3 per gallon. Fifty thousand gallons were delivered on December 15, 20X1, and the remaining 50,000 gallons were delivered on January 15, 20X2. Payment terms were: 50% due on October 1, 20X1, 25% due on first delivery, and the remaining 25% due on second delivery. What amount of revenue should Acme recognize from this sale during 20X1?

a. $75,000

b. $225,000

c. $150,000

d. $300,000

Reference no: EM131255183

Questions Cloud

Assume the standard deduction last year : L. A. and Paula file as married taxpayers. In August of this year, they received a $6,920 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula include in gross income under the following independ..

Compute total manufacturing cost per liter for both products : Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 13,008,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 2,601,600 5-li..

Calculated parametric estimate and analogous cost estimate : Given the following information, calculate the bottom-up estimated costs for a wedding with 250 guests and a bridal party of six, using the methods indicated. If you had calculated Parametric estimate and Analogous cost estimate, would there have bee..

What amount of revenue should acme recognize from this sale : On October 1, 20X1, Acme Fuel Co. sold 100,000 gallons of heating oil to Karn Co. at $3 per gallon. Fifty thousand gallons were delivered on December 15, 20X1, and the remaining 50,000 gallons were delivered on January 15, 20X2. Payment terms were: 5..

Compute maxims realized gain on the sale of the land : In year 1, Maxim sold investment land with a tax basis of $77,000. Payment consisted of $10,000 cash down and the purchaser's note for $90,000. The note is payable in equal installments of $45,000 in years 2 and 3. Compute Maxim's realized gain on th..

What amount of allowance should stone report : Information regarding Stone Co.'s portfolio of marketable equity securities is as follows: Stone reported an allowance of $1,500 to reduce investments to market. In its December 31, 20X2, balance sheet, what amount of allowance should Stone report?

Uses the direct method to prepare statement of cash flows : Flax Corp. uses the direct method to prepare its statement of cash flows. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its statem..

Evaluate the appropriateness of bretts plan : Brett started a new construction business in August 2015. In connection with the new business, he purchased a new backhoe for $70,000 in September of 2015. The new businessis struggling and expecting to show a loss for 2015. Brett has been awarded a ..

User Account

All Pages