Use the following information for questions. Piano Construction Corp.began operations in 2014.Construction activity for 2014 is shown below.Piano uses the completed-contract method.
-On June 1, Electronics Distribution (ED)shipped 100 TVs to TV World (TVW)on consignment.ED buys these TVs from their supplier for $600 each and sells them to TVW for $800.TVW then retails them for $1,200 each.By the end of June, TV World reported that they had sold 60 of these TVs, and remitted the appropriate amount to ED.How much revenue should be recorded by ED in connection with this transaction?
A)$72,000
B)$60,000
C)$48,000
D)$36,000

Question

Use the following information for questions. Piano Construction Corp.began operations in 2014.Construction activity for 2014 is shown below.Piano uses the completed-contract method. 
-On June 1, Electronics Distribution (ED)shipped 100 TVs to TV World (TVW)on consignment.ED buys these TVs from their supplier for $600 each and sells them to TVW for $800.TVW then retails them for $1,200 each.By the end of June, TV World reported that they had sold 60 of these TVs, and remitted the appropriate amount to ED.How much revenue should be recorded by ED in connection with this transaction?
A)$72,000 
B)$60,000 
C)$48,000 
D)$36,000

Quizplus · Accepted Answer

ED should record revenue of $72,000 (60 TVs x $800 per TV x 60% gross profit percentage).

Use the Following Information for Questions