Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2019 were as follows: i. 600 caravans was manufactured at a cost of $15,000 each. ii. 500 caravans were sold for $20,000 each. iii. Cash was collected on 475 of the caravans sold. What was the reported profit for the year ended 30 June 2019 if revenue was recognized when cash was received? a. $0 b. $5,000,000 c. $3,000,000 d. $2,500,000 e. $2,375,000

Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2019 were as follows: i. 600 caravans was manufactured at a cost of $15,000 each. ii. 500 caravans were sold for $20,000 each. iii. Cash was collected on 475 of the caravans sold. What was the reported profit for the year ended 30 June 2019 if revenue was recognized when cash was received? a. $0 b. $5,000,000 c. $3,000,000 d. $2,500,000 e. $2,375,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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