The following information pertains to Eagle Co.’s 2006 sales:
align=”left”>
|
Cash sales |
||
|
Gross |
$ 80,000 |
|
|
Returns and allowances |
4,000 |
|
|
Credit sales |
||
|
Gross |
120,000 |
|
|
Discounts |
6,000 |
|
On January 1, 2006 customers owed Eagle $40,000. On December 31, 2006, customers owed Eagle $30,000. Eagle uses the direct writeoff method for bad debts. No bad debts were recorded in 2006. Under the cash basis of accounting, what amount of net revenue should Eagle report for 2006?
- $ 76,000
- $170,000
- $190,000
- $200,000