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22-10-2020
Business

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Master Bakery is specialized in making wedding cakes. Customers are always required to pay a deposit equal to the full purchase price when they place orders. During the month of September 2013, Master Bakery received $34,000 in customer deposits. The balance in its Deferred Revenue account was $14,000 at September 1, 2013 and $16,000 at September 30, 2013. How much revenue did Master Bakery recognize during the month of September 2013?

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topeadeniran2 topeadeniran2

22-10-2020

Answer: $32,000

Explanation:

Based on the information given in the question, the revenue that Master Bakery will recognize during the month of September 2013 will be:

= $34,000 + $14,000 - $16,000

= $48,000 - $16,000

= $32,000

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