Assume That a Firm Uses the Accrual Basis of Accounting

question 5

Short Answer

Assume that a firm uses the accrual basis of accounting.For each of the following independent cases, indicate the amount of revenue the firm recognizes for the month of August.
a. Collects $2,000 in July for merchandise to be delivered in August.
b. Collects $1,200 in May for subscriptions that will be delivered during the next twelve months (beginning in May).
c. Collects $800 in August for merchandise sold and delivered in July.
d. Collects $2,400 interest on a 6-month certificate of deposit, which matures on August 15th.
e. Sells $3,000 of merchandise on account in August. The firm allows a 2% discount for payment prior to 30 days and customers take the discount.

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Definitions:

Family Life

The daily interactions, routines, and relationships among members of a household, encompassing the various dynamics and structures of families.

Inability to Marry

The state of being legally or practically unable to enter into a marriage, which can be due to various legal, social, or personal reasons.

Overworking

Excessive working hours or workload that can lead to stress, burnout, or health problems.

Peripheral Visual Field

The area of vision that surrounds the direct line of sight, enabling one to see objects at the edges of their visual field.