Question

During 2019, Revitup, Inc., an exercise video retailer, sold $24,000 of videos to its customers. Revitup collected $22,000 and expects to receive the remaining $2,000 in January 2020. Revitup's income statement for the year ended December 31, 2019 will report revenue of $

Answer 1

Answer:

$24,000

Explanation:

Since in the question it is provided that there is a sale value of the videos to its customers i.e. $24,000 also the collection is of $22,000 and the remaining balance i.e. $2,000 is expected to collect in Jan 2020

Based on the above information, the revenue should be reported on the income statement at the $24,000 as this amount represent the sale value of the videos to its customers and hence, the same is to be considered

Hence, 24,000 would be reported as a revenue in the income statement