Suppose Widmore sold software with a retail value of $115,000 to Tampa Pictures, Inc. Instead...
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Suppose Widmore sold software with a retail value of $115,000 to Tampa Pictures, Inc. Instead of receiving cash, Widmore received 14,000 shares of Tampa Pictures stock, which at the time was selling for $6 per share. Requirements 1. What revenue should Widmore recognize on the sale? 2. Prepare the journal entry for this sale. Requirement 1. What revenue should Widmore recognize on the sale? Widmore must measure revenue at the therefore, Widmore should recognize $ on the sale. Requirement 2. Prepare the journal entry for this sale. (Record debit first, then credits. Explanations are not required.) Date Accounts Debit Credit Requirement 1. What revenue should Widmore recognize on the sale? Widmore must measure revenue at the therefore, Widmore should recognize $ on the sale. Requirement 2. Prepare the journal ent ions are not required.) Date Account: cash-equivalent value of the asset received; retail value of the product sold; JUIL
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