Question
Burke Enterprises sells toy flying saucers. The following information relates to toy sales during the month of June (the first month of operations) and to
Burke Enterprises sells toy flying saucers. The following information relates to toy sales during the month of June (the first month of operations) and to related cash transactions with customers. Behrend pays a sales commission of 1% of all sales, with payment in the month following the month of sale.
Toy sales for cash $ 18,000
Toy sales on account (credit sales) $ 42,000
Collections from customers for the credit sales $ 3,000
Deposits received from customers for orders to be filled in July $ 2,000
In the income statement for its first month, Burke should report sales revenue of
$60,000
$62,000
$23,000
$21,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started