Question

During the month, merchandise is sold for $80,500 cash and for $119,000 on account. The cost of merchandise sold is $101,500. What is the amount of revenue? a.$199,500 b.$80,500 c.$119,000 d.$101,500

Answer 1

Value of revenue = $98,000

Step-by-step explanation:

Here, we are interested in calculating the revenue.

Firstly, we add the sales on cash with the sales on account.

Mathematically that would be;

80,500 + 119,000 = $199,500

The value of the revenue = Amount in sales - cost of merchandise = 199,500-101,500 = $98,000