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Revenue and Expense Recognition

Omega Transportation Inc., headquartered in Atlanta, Georgia, uses accrual$-$basis accounting and engaged in the following transactions:

billed customers $$2,341,860$ for transportation services

collected cash from customers in the amount of $$1,381,975$

purchased fuel supplies for $$1,333,800$ cash

used fuel supplies that cost $$1,301,830$

employees earned salaries of $$292,300$

paid employees $$280,300$ cash for salaries

Required:

Determine the amount of sales revenue and total expenses for Omega's income statement.

Sales Revenue

Total Expenses

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Under accrual$-$basis accounting, revenue is recognized when it is earned and the collection of cash is reasonably assured $($the revenue recognition principle$).$

Expenses are recognized when incurred, which is generally the same period as the revenue they helped generate $($the expense recognition, or matching, principle$).$

$3$ more Check My Work uses remaining.

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