Question
The following information pertains to Spee Co.'s 2016 sales: Cash sales Gross $40,000 Returns and allowances 2,000 Credit sales Gross 60,000 Discounts 3,000 On January
The following information pertains to Spee Co.'s 2016 sales:
| Cash sales | ||
| Gross | $40,000 | |
| Returns and allowances | 2,000 | |
| Credit sales | ||
| Gross | 60,000 | |
| Discounts | 3,000 |
On January 1, 2016, customers owed Spee $20,000. On December 31, 2016, customers owed Spee $15,000. Spee uses the direct write-off method for bad debts. No bad debts were recorded in 2016. Under the cash basis of accounting, what amount of revenue should Spee report for 2016?
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To determine the revenue under the cash basis of accounting we only consider cash ...
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
