How do I record sales in income statement?
September 18th, 2009 | by x9a6a3sw |
Justin T asked:
Given the following problem:
Cash received from customers totaled $400,000 in 2005. Of this total, $40,000 represented payments on work that had been completed and billed in 2004. At the end of 2005, $20,000 of additional billings had been mailed, but payment had not yet been received.
Given the following problem:
Cash received from customers totaled $400,000 in 2005. Of this total, $40,000 represented payments on work that had been completed and billed in 2004. At the end of 2005, $20,000 of additional billings had been mailed, but payment had not yet been received.
How much should I record as Sales for 2005 Income Statement?
Michael
One Response to “How do I record sales in income statement?”
By Alan S on Sep 18, 2009 | Reply
Sales 380000 as for why the 2005 income statement should only include sales 380000 as for sales that is why the answer would look like debit accounts receivable 40000 this entry reflects the computation.