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Exercise 1-8(Algo) Applying measurement principle and revenue recognition principle LO C2 a. Byrde...

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Accounting

Exercise 1-8(Algo) Applying measurement principle and revenue recognition principle LO C2
a. Byrde Company purchased a truck. The seller asked for $12,400, but Byrde paid only $11,400 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $16,400. What amount does Byrde record on its financial 'statements for the truck?
b. Snell Company performs services for a client in May and bills the client $2,400. In June, Snell receives a partial payment of $1,000 cash. In July, the remaining $1,400 cash is received. Determine the monthly revenue recorded in May, June, and July applying revenue recognition principle.
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Byrde Company purchased a truck. The seller asked for $12,400, but Byrde paid only $11,400 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $16,400. What amount does Byrde record on its financial statements for the truck?
Financial statement amount
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