Current Attempt in Progress Gourmand Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meall kits to the customer's home. Single meal kits can be purchased at grocery stores. Approximately 10% of the kits shipped to grocery stores each month are returne unsold and are then discarded. Gourmand charges the grocery stores $12 for each meal kit. In December 2020, Gourmand began selling three-month subscriptions for $720. Subscriptions are paid in advance and are non-cancellable. Gourmand sold 860 subscriptions on December 1, 2020 which entitle the subscriber to 15 meal kits each month beginning in December 2020. During December, 4,980 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have 30-day terms of payment with Gourmand. Determine how much revenue Gourmand Dinner Box would be able to recognize in December 2020. Revenue Recognized in December 2020 (Sales by Subscription) Revenue Recognized in December 2020 (Sales at Grocery Stores) $ eTextbook and Media $ List of Accounts
Current Attempt in Progress Gourmand Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meall kits to the customer's home. Single meal kits can be purchased at grocery stores. Approximately 10% of the kits shipped to grocery stores each month are returne unsold and are then discarded. Gourmand charges the grocery stores $12 for each meal kit. In December 2020, Gourmand began selling three-month subscriptions for $720. Subscriptions are paid in advance and are non-cancellable. Gourmand sold 860 subscriptions on December 1, 2020 which entitle the subscriber to 15 meal kits each month beginning in December 2020. During December, 4,980 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have 30-day terms of payment with Gourmand. Determine how much revenue Gourmand Dinner Box would be able to recognize in December 2020. Revenue Recognized in December 2020 (Sales by Subscription) Revenue Recognized in December 2020 (Sales at Grocery Stores) $ eTextbook and Media $ List of Accounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A-7
Transcribed Image Text:Current Attempt in Progress
Gourmand Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The
company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meall
kits to the customer's home.
Single meal kits can be purchased at grocery stores. Approximately 10% of the kits shipped to grocery stores each month are returne
unsold and are then discarded. Gourmand charges the grocery stores $12 for each meal kit. In December 2020, Gourmand began
selling three-month subscriptions for $720. Subscriptions are paid in advance and are non-cancellable. Gourmand sold 860
subscriptions on December 1, 2020 which entitle the subscriber to 15 meal kits each month beginning in December 2020. During
December, 4,980 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores
have 30-day terms of payment with Gourmand.
Determine how much revenue Gourmand Dinner Box would be able to recognize in December 2020.
Revenue Recognized in December 2020 (Sales by Subscription)
Revenue Recognized in December 2020 (Sales at Grocery Stores) $
eTextbook and Media
$
List of Accounts
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education