Question

A retailer had cash sales of $85,000 and sales on account of $26,000 for the year 2017. On December 31, 2017, they were still owed $14,000 from a few customers. How much will they report as revenue for the year 2017?

Answer 1

The retailer will report $97,000 as revenue for the year 2017.

Step-by-step explanation:

To calculate the revenue for the year 2017, we need to add the cash sales and the sales on account, and then subtract the amount still owed on December 31, 2017.

Cash sales are $85,000 and sales on account are $26,000, so the total sales for the year are $85,000 + $26,000 = $111,000. Subtracting the amount still owed gives us $111,000 - $14,000 = $97,000. Therefore, the retailer will report $97,000 as revenue for the year 2017.