The following information pertains to Spee Co.'s 2016 sales: Cash sales Gross $40,000 Returns and allowances 2,000
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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 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?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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