Answer:
The amount of revenue to be reported for the m/o July -31 = $8850.
Explanation:
July-12. Account Receivable = $ 940
July-16. Account Receivable = $ 4940
July-19. Account Receivable = $ 2970
July-23. Account Receivable = (4940-4940)=$0 (due to cash received)
July-31. Account receivable= (2970-2970)=$0. (due to cash received)
Sales
Sales to wally = $940
Sales to Claudio = $4940
Sales to Otto =<u> $2970</u>
Total sales = $8850.
Cost of goods sold
Cost of sales to wally = $570
Cost of sales to Claudio = $3470
Cost of sales to Otto = <u>$1870</u>
Total Cost of sales $5910
Gross profit = Sales - cost of sales = 8850 - 5910 = $ 2940.