On March 1, Pendant Textbook Publications delivers 100 copies of one of its accounting textbooks to the First University bookstore. The bookstore can return all unsold copies to Pendant. The retail price of each copy is $110, while the price charged to the bookstore is $80. Each book costs Pendant $40 to produce. On April 15, the distributor returns 30 unsold copies to Pendant. Based on these facts, how much revenue would Pendant recognize on April 15?

Question

Quizplus · Accepted Answer

Pendant would recognize revenue for the 70 copies sold (100 delivered - 30 returned) at the price charged to the bookstore, which is $80 per copy. Therefore, the revenue recognized would be 70 copies x $80 = $5,600.

On March 1, Pendant Textbook Publications Delivers 100 Copies of One