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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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