Crane Inc. sells prepaid telephone cards to customers in its convenience stores. When Crane sells cards, it then pays the telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Crane receives $3,600 of prepaid cards in January 2025. Crane sold 45% of the cards in February, 30% in March, and 25% in April. The total payment by Crane to Blossom over the 3 months is $2,880. Indicate how much income Crane should recognize in January, February, March, and April. (If answer is 0, please enter O. Do not leave any fields blank.) January income February income $ March income $ April income $ $
Crane Inc. sells prepaid telephone cards to customers in its convenience stores. When Crane sells cards, it then pays the telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Crane receives $3,600 of prepaid cards in January 2025. Crane sold 45% of the cards in February, 30% in March, and 25% in April. The total payment by Crane to Blossom over the 3 months is $2,880. Indicate how much income Crane should recognize in January, February, March, and April. (If answer is 0, please enter O. Do not leave any fields blank.) January income February income $ March income $ April income $ $
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 10P
Related questions
Question
![Crane Inc. sells prepaid telephone cards to customers in its convenience stores. When Crane sells cards, it then pays the
telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Crane receives $3,600 of
prepaid cards in January 2025. Crane sold 45% of the cards in February, 30% in March, and 25% in April. The total payment by Crane
to Blossom over the 3 months is $2,880.
Indicate how much income Crane should recognize in January, February, March, and April. (If answer is 0, please enter O. Do not leave any
fields blank.)
January income
February income $
March income
$
April income
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa130ea17-c56c-4bf0-9228-7c6816100904%2F66c6f1f3-cd13-4315-9404-f663262c3b11%2Fsurdfnn_processed.png&w=3840&q=75)
Transcribed Image Text:Crane Inc. sells prepaid telephone cards to customers in its convenience stores. When Crane sells cards, it then pays the
telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Crane receives $3,600 of
prepaid cards in January 2025. Crane sold 45% of the cards in February, 30% in March, and 25% in April. The total payment by Crane
to Blossom over the 3 months is $2,880.
Indicate how much income Crane should recognize in January, February, March, and April. (If answer is 0, please enter O. Do not leave any
fields blank.)
January income
February income $
March income
$
April income
$
$
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