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During 2019, Sigma Company earned service revenue amounting to $700,000, 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 $10,000. What amount should the 2019 income statement report for service revenue?

Respuesta :

Answer:

$700,000

Explanation:

As we know that

The income statement is the statement that records the income and the expenditure for a company

The expenses should be shown on debit side while the income or revenue is shown on the credit side

Since the total service revenue earned is $700,000 and the same is to be shown in the income statement as it records all the cash and credit sales or service revenue

Therefore, the total amount i.e $700,000 is reported on the income statement

The amount that should the 2019 income statement report for service revenue is $700,000.

What is income statement?

The income statement refers to the statement where the income and expenses are recorded. Also, the expenses contains the debit balance while the revenue contains the credit balance. Since $700,000 represent the service revenue so the same should be reported on the income statement.

Learn more about income here; https://brainly.com/question/17961582?referrer=searchResults

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