On October 1, 20x3, ABC Fuel Co. sold 100,000 gallons of heating oil to DEF Co. at ₱4 per gallon. Twenty Five thousand gallons were delivered on December 15, 20x3, and the remaining 75,000 gallons were delivered on January 15, 20x4. Payment terms were: 25% due on October 1, 20x3, 50% due on first delivery, and the remaining 25% due on second delivery. What amount of revenue should ABC Fuel Co. recognize from this sale during 20x3?
On October 1, 20x3, ABC Fuel Co. sold 100,000 gallons of heating oil to DEF Co. at ₱4 per gallon. Twenty Five thousand gallons were delivered on December 15, 20x3, and the remaining 75,000 gallons were delivered on January 15, 20x4. Payment terms were: 25% due on October 1, 20x3, 50% due on first delivery, and the remaining 25% due on second delivery. What amount of revenue should ABC Fuel Co. recognize from this sale during 20x3?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On October 1, 20x3, ABC Fuel Co. sold 100,000 gallons of heating oil to DEF Co. at ₱4 per gallon. Twenty
Five thousand gallons were delivered on December 15, 20x3, and the remaining 75,000 gallons were delivered
on January 15, 20x4. Payment terms were: 25% due on October 1, 20x3, 50% due on first delivery, and the
remaining 25% due on second delivery. What amount of revenue should ABC Fuel Co. recognize from this
sale during 20x3?
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