Question

During 2019, Zigma Company earned service revenue amounting to $770,000, 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 $9,800. What amount should the 2019 income statement report for service revenue?

Answer 1

Answer:

$770,000

Explanation:

Given that

Service revenue = $770,000

Cash collected = $630,000

Remaining amount cash collected in January = $140,000

And, the delivery of goods is $9,800

Since the service revenue is earned for $770,000 and the same amount is to be reported under the income statement. Other items values would be ignored