Payment terms were 50 due on october 1 1996 25 due on first, Ask an Expert

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On October 1, 1996, Acme Fuel Co. sold 100,000 gallons of heating oil to Karn Co. at $3. per gallon. Fifty thousand gallons were delivered on December 15, 1996, and the remaining 50,000 gallons were delivered on January 15, 1997. Payment terms were: 50% due on October 1, 1996, 25% due on first delivery and 25% due on the second delivery. What amount of revenue should Acme recognize from this sale during 1996?

a. $75,000

b. $150,000

c. $225,000

d. $300,000

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Accounting Basics, Accounting

Category:- Accounting Basics
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