Lewis Co. sold merchandise to AdCo for $60,000 and received $60,000 for that sale one month later. One weekprior to receiving payment from AdCo, Lewis made a $10,000 payment to AdCo for advertising services thathave a fair value of $7,500. After accounting for any necessary adjustments, how much revenue should LewisCo. record for the merchandise sold to AdCo?

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.