Determine the net revenue by accrual basis


Response to the following problem:

Fair play had the following information related to the sale of its products during 2009, which was its first year of business:

Revenue                           $1,000,000

Returns of goods sold       $  100,000

Cash collected                  $  800,000

Cost of goods sold           $  700,000

Under the accrual basis of accounting, how much net revenue would be reported on Fairplay's 2009 income statement?

 

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Accounting Basics: Determine the net revenue by accrual basis
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