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Question - Green Meadows sells potted plants to gardening shops. On December 6, 2020, Green Meadows enters into a contract with Autumn Leaves to deliver 1,100 potted plants to Autumn Leaves at $15 per pot in three batches.
Delivery date Units delivered
December 20, 2020 600
December 31, 2020 350
January 16, 2021 150
On December 20, 2020, Autumn Leaves modifies the scope of the contract to include an order for an additional 400 potted plants to be delivered on January 23, 2021. The agreed price for the additional 400 potted plants is $13 per pot, which is the stand-alone price of each of the additional pots on that date.
Deliveries are made as scheduled. The financial year-end of Green Meadows is December 31, 2020.
Required - Calculate the revenue to be recognized by Green Meadows in:
a. December 2020
b. January 2021
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