Fairchild Had the Following Information Related to the Sale of Its

question 32

Multiple Choice

Fairchild had the following information related to the sale of its products during its first year of business: $$\begin{array} { | l | r | } \hline \text { Revenue } & \$ 1,000,000 \\\hline \text { Returns of goods sold } & \$ 100,000 \\\hline \text { Cash collected } & \$ 800,000 \\\hline \text { Cost of goods sold } & \$ 700,000 \\\hline\end{array}$$ Under the accrual basis of accounting, how much net revenue would be reported on Fairchild 's income statement?

• A) $200,000
• B) $800,000
• C) $900,000
• D) $700,000

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