During 20B,its Second Year in Operation,Banner Company Delivered Goods to Customers

question 85

Multiple Choice

During 20B,its second year in operation,Banner Company delivered goods to customers for which customers paid or promised to pay $5,850,000.The amount of cash collected from customers was $5,960,000.The amount of trade receivables at the beginning of 20B was $1,200,000.What is the amount of sales revenue that Banner should report on its income statement for 20B?

• A)$4,650,000.
• B)$4,760,000.
• C)$5,850,000.
• D)$5,960,000.

---

Definitions:

Property Claim

A legal assertion by an individual or entity over the ownership or compensation for loss or damage to property.

Judgment Creditor

A person or entity that has been awarded a monetary judgment against a debtor by a court, giving them the right to collect the debt.

Motion

In a civil case, a request made by either party that asks a judge or a court to issue an order in that party's favor.

Mechanic's Lien

A security interest granted to those who have supplied labor or materials that improve property, ensuring payment for their services or goods.