Reference no: EM132612494

Problem 1: In the month of March the Chester Corporation received and delivered orders of 179,000 units at a price of $15.00 for revenue of $2.685mil for their product Camp. Chester uses the accrual method of accounting and offers 30 day credit terms. By the end of May Chester had collected payments of $2.685mil for the March deliveries. How much of the collected $2.685mil should Chester show on the March 31st income statement and how much on the May 31st income statement?

Select: 1

Option 1: $0.886mil in March;

Option 2: $1.799mil in May$2.685mil in March;

Option 3: $0 in May$0 in March;

Option 4: $2.685mil in May$1.343mil in March;

Option 5: $1.343mil in May