Ayayai Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $72,000. Ayayai normally sells its riding mowers for $14,400 and its push lawn mowers for $960. The contract required the City of Halifax to pay Ayayai once all of the merchandise has been delivered to the city's public works yard. Ayayai's management does not expect any returns or any issues with payment. Ayayai delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered on May 5. Ayayai received payment from the city on May 18. Ayayai's cost for each riding mower is $9,960, while the push mowers cost the company $620 each. (a) Determine the amount of revenue that Ayayai would be able to recognize in April. Revenue Recognized Riding mowers $4 Push lawnmowers
Ayayai Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $72,000. Ayayai normally sells its riding mowers for $14,400 and its push lawn mowers for $960. The contract required the City of Halifax to pay Ayayai once all of the merchandise has been delivered to the city's public works yard. Ayayai's management does not expect any returns or any issues with payment. Ayayai delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered on May 5. Ayayai received payment from the city on May 18. Ayayai's cost for each riding mower is $9,960, while the push mowers cost the company $620 each. (a) Determine the amount of revenue that Ayayai would be able to recognize in April. Revenue Recognized Riding mowers $4 Push lawnmowers
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter2: Working With The Tax Law
Section: Chapter Questions
Problem 1RP
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