Question

on january 1 year 1 abc merchandising company was started the company experienced the following events during the first year of operations started the business by the issue common stock for 1000 cash purchased 410 inventory on account how much revenue will abc merchandisng company report

Answer 1

Answer: $390

Explanation:

Revenue for a merchandising business is realized when the business sells some of its goods to customers. This can either be in cash or on account which would mean that the customer did not pay cash but now owes them.

The business sold merchandise costing $350 for $390 on account so this is the amount that they will recognize as revenue.