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Made cash sales of $51,400 (example).Purchased $3,250 of additional supplies on account.Borrowed $59,000 on long-term notes.Purchased $23,600 in additional equipment, paying in cash.Incurred $39,150 in selling expenses, paying two-thirds in cash and owing the rest on account.Paid $4,750 in rent for this month, and also paid $4,750 for next month.What is the preliminary net income. keeps saying incorrect

Question

Made cash sales of $51,400 (example).
Purchased $3,250 of additional supplies on account.
Borrowed $59,000 on long-term notes.
Purchased $23,600 in additional equipment, paying in cash.
Incurred $39,150 in selling expenses, paying two-thirds in cash and owing the rest on account.
Paid $4,750 in rent for this month, and also paid $4,750 for next month.

What is the preliminary net income. keeps saying incorrect

check_circleAnswer
Step 1

First step is to compute the total revenue earned for the period whether received in cash or not:

Thus on analysing the transactions, one transactions relates to earning of revenue:

Therefore, Sales revenue =  51400

On Analysing the transactions, two transaction...

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