In the month of March the Digby Corporation received and delivered orders of 149,000 units...
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Accounting
In the month of March the Digby Corporation received and delivered orders of 149,000 units at a price of $15.00 for revenue of $2.235mil for their product Daze. Digby uses the accrual method of accounting and offers 30 day credit terms. By the end of May Digby had collected payments of $2.235mil for the March deliveries. How much of the collected $2.235mil should Digby show on the March 31st income statement and how much on the May 31st income statement?
A
$2.235mil in March; $0 in May
B
$1.117mil in March; $1.117mil in May
C
$0 in March; $2.235mil in May
D
$0.738mil in March; $1.497mil in May
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