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Home / Questions / FINANCIAL REPORTING CONCEPTS 6 MARKS Red Sun Sailing Inc sold $175500 of boat parts on cr...

FINANCIAL REPORTING CONCEPTS 6 MARKS Red Sun Sailing Inc sold $175500 of boat parts on credit in the month of SepPART

PART 3: FINANCIAL REPORTING CONCEPTS (6 MARKS) Red Sun Sailing Inc. sold $175,500 of boat parts on credit in the month of Sep

PART 3: FINANCIAL REPORTING CONCEPTS (6 MARKS) Red Sun Sailing Inc. sold $175,500 of boat parts on credit in the month of September to customers. 30% of the goods were shipped FOB destination and 70 % were shipping FOB shipping point. At September 30, $25,000 of the goods that were FOB destination, were in transit. During September the company collected $100,000 cash from its customers. The company estimates that about 2 % of the sales will become uncollectible and that about 8% of the sales will be returned by the customer. Requirement 6 (6 marks): How much revenue should the company recognize for the month of September?

Feb 08 2020 View more View Less

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