Question

The following transactions occurred during July: Received $1,000 cash for services provided to a customer during July. Received $4,000 cash investment from Bob Johnson, the owner of the business Received $850 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $475. Borrowed $7,000 from the bank by signing a promissory note. Received $1,350 cash from a customer for services to be rendered next year. What was the amount of revenue for July

Answer 1

The amount of revenue for the month of July amounts to $1,475

Step-by-step explanation:

Revenue is the income or the revenue which the business has from the normal activities of the business, mostly from the sale of the goods and the services to the customers. It is acknowledged as the turnover or sales.

So, the transactions which generate the revenue in the following month are:

Received or collected cash from customer for the services worth $1,000

Service is provided worth $475 to the customer on credit

These two transactions are the revenue, therefore, the total amount of revenue is $1,475 ($1,000 + $475).