Question

uring 2019, Zigma Company earned service revenue amounting to $810,000, of which $650,000 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 $8,100. What amount should the 2019 income statement report for service revenue?

Answer 1

Answer:

$810,000

Explanation:

Based on the information given we were told that the during the year 2019 the Company earned service revenue that was amounting to the amount of $810,000 which simply means that the amount that the year 2019 income statement of the company should report for service revenue will be the amount of money or cash that the Company earned as service revenue which is $810,000.