During 20B,its second year in operation,Banner Company delivered goods to customers for which customers paid or promised to pay $5,850,000.The amount of cash collected from customers was $5,960,000.The amount of trade receivables at the beginning of 20B was $1,200,000.What is the amount of sales revenue that Banner should report on its income statement for 20B?

Question

Quizplus · Accepted Answer

Sales revenue is the total amount of goods sold during the year, regardless of whether payment has been received or not. In this case, Banner Company delivered goods worth $5,850,000 to customers during the year. This is the amount of sales revenue that should be reported on the income statement, regardless of whether payment was collected in cash or not. So, the correct answer is C.

During 20B,its Second Year in Operation,Banner Company Delivered Goods to Customers