Fairplay had the following information related to the sale of its products during 2006, 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 2006 income statement?
a. $200,000
b. $800,000
c. $900,000