During 2014, Sigma Company earned service revenues amounting to $700,000, of which $630,000 was collected in cash; the balance will be collected in January, 2015. Also in 2014 there were collections of cash prior to the delivery of goods/services totaling $10,000. What amount should the 2014 income statement report for service revenues?
A) $630,000.
B) $700,000.
C)$70,000.
D)$570,000.

Question

Quizplus · Accepted Answer

The income statement should report the total service revenues earned during the year, which is $700,000, regardless of the amount collected in cash.

During 2014, Sigma Company Earned Service Revenues Amounting to $700,000