Sandhill Inc. sells prepaid telephone cards to customers in its convenience stores. When Sandhill sells cards, it then pays the telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Sandhill receives $4,400 of prepaid cards in January 2025. Sandhill sold 50% of the cards in February, 35% in March, and 15% in April. The total payment by Sandhill to Blossom over the 3 months is $3,520. Indicate how much income Sandhill should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not leave any fields blank.) January income February income $ 440 March income $ 264 April income 176
Sandhill Inc. sells prepaid telephone cards to customers in its convenience stores. When Sandhill sells cards, it then pays the telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Sandhill receives $4,400 of prepaid cards in January 2025. Sandhill sold 50% of the cards in February, 35% in March, and 15% in April. The total payment by Sandhill to Blossom over the 3 months is $3,520. Indicate how much income Sandhill should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not leave any fields blank.) January income February income $ 440 March income $ 264 April income 176
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sandhill Inc. sells prepaid telephone cards to customers in its convenience stores. When Sandhill sells cards, it then pays the
telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Sandhill receives $4,400 of
prepaid cards in January 2025. Sandhill sold 50% of the cards in February, 35% in March, and 15% in April. The total payment by
Sandhill to Blossom over the 3 months is $3,520.
Indicate how much income Sandhill should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not
leave any fields blank.)
January income
$
0
February income
$
440
March income
$
264
April income
$
176
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