Question

Firm sells 1000 ticket bundles during december for $380 each. As of December 31, the firm...

Firm sells 1000 ticket bundles during december for $380 each. As of December 31, the firm received full cash payment for 700 of the bundles. Each bundle has ticket for 5 concerts and a t shirt. Normal sales price of each ticket is $60 and each t shirt is $100. T shirts are delivered when cash is retrieved. How much revenue does the firm recognize for the year?

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Answer #1

Since firm is selling ticket bundles during december is for $380 each and therefore firm will receive the amount with the same same rate i.e. $380. Therefore revenue shall be recorded with the same price because even in future company is not supposed to receive more amount.

So in simple terms revenue shall be recorded for $380 each for 1000 ticket bundles

Revenue = 1000 X $380

Revenue = $380,000

Note: Normal selling price of ticket and t-shirt will not affect the revenue of ticket bundles.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

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