Sheridan Company collected $19000 in May of 2020 for 5 months of service which would take place from October of 2020 through February of 2021. The revenue reported from this transaction during 2020 would be O $11400. O $3800. O 0. $19000.

Sheridan Company collected $19000 in May of 2020 for 5 months of service which would take place from October of 2020 through February of 2021. The revenue reported from this transaction during 2020 would be O $11400. O $3800. O 0. $19000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 26E

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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

Sheridan Company collected $19000 in May of 2020 for 5 months of service which would take place from October of 2020 through
February of 2021. The revenue reported from this transaction during 2020 would be
$11400.
$3800.
0.
$19000.

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