This is one from the Q-Bank… I think it’s a real POS. Your answers will let me know if I am off base on this one… The JME Jumpers, a professional volleyball team, sells season tickets to all home games. The cost of a season ticket is $1,000 and the team plays 20 home games, which run from April through August. For the year ended June 30, 2005, JME sold 1,200 tickets, collected 80 percent of the amount owed, and played 12 home games. How much revenue should JME recognize? A. 0 B. 720,000 C. 960,000 D. 1,200,000
I think the answer would be 1200 * 1000 * 12 /20 = 720K bcos 1000 $ is for 20 home games, while they played only 12. CP
I’m going to go with B. 1000*1200 = $1,200,000 12 / 20 = 0.6 0.6 * $1,200,000 = $720,000 Don’t know if that is the right way to do it or not.
at sale of season ticked is unearned revenue. every match a portion goes from unearned revenue to revenue for the month. the cash thing does not matter
Kick me in the intellectual balls guys (and girls)… I was thinking 1,200,000. Didn’t realize more games would be played in the season. Concern sets in… And to think I have an accounting degree! Haha. Making my professors proud.
Well. That’s what the posts are for. You’ll be fine. Just keep learnin’!