Question

In Dart Co.'s year two single-step Income Statement, as prepared by Dart's controller, the section titled "Revenues" consisted of the following:Sales $250,000Purchase discounts 3,000Recovery of accounts written off 10,000Total revenues $263,000In its year two single-step Income Statement, what amount should Dart report as total revenues?A. $250,000B. $253,000C. $260,000D. $263,000

Answer 1

$250,000

Step-by-step explanation:

The purchase discount will change the value of net purchases and thus, ending invenotry and cost of goods sold not revenues.

The recovery of accounts written off comes from a previous sales which alter the allowance for doubtful account and bad debt expense but this do not alter the revenues for the period.

Only sales of the period represent revenues.