CALCULATION OF REVENUE
Wallace Motors, which began business on December 31, 2009, buys and sells used cars. All its sales are to other car dealers. Four cars were purchased during January and none were purchased during February. The cars were sold under the following terms:
a. Three of the four cars were sold to Russell Auto Sale for a total of $75,000; the cars were delivered to Russell on January 18. Russell paid Wallace $20,000 on January 18 and the remaining $55,000 on February 12.
b. The fourth car purchased during January was sold to Hastings Classics for $28,000. The car was delivered to Hastings on January 25. Hastings paid Wallace on January 30.
Required:
Calculate the monthly revenue for Wallace Motors for January and February 2010.