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7 June, 23:32

During its first year of operations, White Company bills credit customers $15,100 for services rendered. During the year, White receives $10,500 from all customers, $2,500 of which is received from cash customers. Required: What amount of revenue should be shown on the income statement for the year

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  1. 8 June, 00:41
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    Total revenue = $17,600

    Explanation:

    Given:

    Bills credit to customers during the year = $15,100

    Receive amount from customer = $10,500

    Amount received in cash = $2,500

    Total revenue during the year = ?

    Computation of total revenue during the year:

    According to the accrual basis of accounting, total revenue includes the sum of credit and cash sales.

    Total revenue = Cash sales + Credit sales

    Total revenue = $2,500 + $15,100

    Total revenue = $17,600
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