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?

Answer rating: 100% (QA)

To determine the revenue under the cash basis of accounting we only consider cash ... View the full answer