Pemco Enterprises sells annual memberships to its shooting lodge. The memberships cost $200 each. On January 1, Pemco sold 3000 memberships and received cash. Refer to Pemco Enterprises. How much revenue should Pemco recognize each month? (Round your final answer to the nearest whole number.)
A) $0
B) $25,000
C) $50,000
D) $60,000

Question

Quizplus · Accepted Answer

The total revenue from the memberships is $600,000 ($200 x 3000). Since the memberships are for a year, Pemco should recognize $50,000 each month ($600,000 / 12 months).

Pemco Enterprises Sells Annual Memberships to Its Shooting Lodge