Question: The following transactions are July activities of
The following transactions are July activities of Craig’s Bowling, Inc., which operates several bowling centers (for games and equipment sales). If revenue is to be recognized in July, indicate the revenue account title and amount. If revenue is not to be recognized in July, explain why.
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Activity Revenue Account Title and Amount a. Craig's collected $15,000 from customers for games played in July. b. Craig's sold bowling merchandise inventory from its pro shop for $8,000; received $3,000 in cash and customers owed the rest on account. (See M3-4[e] for the cost of goods sold [expense] related to these sales.) c. Craig's received S4,000 from customers who purchased merchandise in June on account. d. The men's and ladies' bowling leagues gave Craig's a deposit of $2,500 for the upcoming fall season.
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