During the past year Ascot Company made credit sales of $450,000, cash sales of $275,000, and collected $50,000 of deposits on future orders.What amount should they report as revenue on their income statement?

Question

Quizplus · Accepted Answer

Revenue on the income statement should include both credit sales ($450,000) and cash sales ($275,000), totaling $725,000. Deposits on future orders are not recognized as revenue until the service is performed or goods are delivered.

During the Past Year Ascot Company Made Credit Sales of $450,000