The following information pertains to Spee Co.'s 2016 sales: Cash sales Gross $40,000 Returns and allowances...
The following information pertains to Spee Co.'s 2016
sales:
| Cash sales | ||
| Gross | $40,000 | |
| Returns and allowances | 2,000 | |
| Credit sales | ||
| Gross | 60,000 | |
| Discounts | 3,000 |
On January 1, 2016, customers owed Spee $20,000. On December 31,
2016, customers owed Spee $15,000. Spee uses the direct write-off
method for bad debts. No bad debts were recorded in 2016. Under the
cash basis of accounting, what amount of revenue should Spee report
for 2016?
Homework Answers
Calculate revenue under 2016
| Cash Sales (40000-2000) | 38000 |
| Credit Sales (20000+57000-15000) | 62000 |
| Total revenue for 2016 | 100000 |
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