Question

During 2019, Sigma Company earned service revenue amounting to $700,000, of which $630,000 was collected in cash; the balance will be collected in January, 2020. Also in 2019, there were collections of cash prior to the delivery of goods/services totaling $10,000. What amount should the 2019 income statement report for service revenue?

Answer 1

Answer:

$700,000

Explanation:

As we know that

The income statement is the statement that records the income and the expenditure for a company

The expenses should be shown on debit side while the income or revenue is shown on the credit side

Since the total service revenue earned is $700,000 and the same is to be shown in the income statement as it records all the cash and credit sales or service revenue

Therefore, the total amount i.e $700,000 is reported on the income statement