Fairplay 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?
A. $200,000
B. $900,000
C. $1,000,000