Question

Malone Company sold inventory to a customer for 460, who paid400 in cash and the rest on account. How much revenue should Malone Company recognize in their tabular analysis of this transaction?

Answer 1

Malone Company should recognize revenue of $400 in their tabular analysis of this transaction.

Step-by-step explanation:

In this transaction, Malone Company sold inventory to a customer for $460, with $400 paid in cash and the remaining amount on account. To determine the revenue that Malone Company should recognize, we need to consider the revenue recognized at the time of sale. Since $400 was paid in cash, that amount represents revenue for the company. The remaining amount on account will be recognized as revenue when it is actually received.

So, the revenue that Malone Company should recognize in their tabular analysis of this transaction is $400.