Question

HW 5 instructions help Question 12 (of 20) Save & Exit Submit 12. value: 10.00 points Green Meadows sells potted plants to gardening shops. On December 6, 2020, Green Meadows enters into a contract with Autumn Leaves to deliver 1,100 potted plants to Autumn Leaves at $15 per pot in three batches. Delivery date December 20, 2020 December 31, 2020 January 16, 2021 Units delivered 600 350 150 On December 20, 2020, Autumn Leaves modifies the scope of the contract to include an order for an additional 400 potted plants to be delivered on January 23, 2021. The agreed price for the additional 400 potted plants is $13 per pot, which is the stand-alone price of each of the additional pots on that date. Deliveries are made as scheduled. The financial year-end of Green Meadows is December 31, 2020 Required: Calculate the revenue to be recognized by Green Meadows in: a. December 2020 b. January 2021 1. Revenue in December 2020 2. Revenue in January 2021 21,700

Answer 1

Computation of Revenue to be recognised by Green Meadows Product Delivery Date Units x Rate Remarks Units Rate 600 $ 15 $ December 20,2020 9,000 Revenue to recognised in Dec 15 $ December 31,2020 350 $ 5,250 Revenue to recognised in Dec Totals Revenue to be recognised in Dec,2020 14,250 150 $ 15 $ 2,250 Revenue to recognised in Jan January 16,2021 400 $ 13 $ 5,200 Revenue to recognised in Jan January 23,2021 Totals Revenue to be recognised in Jan,2021 7,450 Note: Revenue is to recognised when the actual delivery is made, if the amount is receieved from the customer in December, it will be shown as Advances in the Liability side of the balance sheet and will be recognised as revenue will the actual delivery takes place. Revenue in December 2020 $ 1 14,250 $ Revenue in January 2021 7,450 2

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