store also sells used instruments for people who are willing to give the store part of the sales price. The sale of used instruments, called sale
store also sells used instruments for people who are willing to give the store part of the sales price. The sale of used instruments, called sale
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 2A: A music store sells new instruments. The store also sells used instruments for people who are...
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A music store sells new instruments. The store also sells used instruments for people who are willing to give the store part of the sales price. The sale of used instruments, called sales commissions, amount to about one-fourth [25%] of total income. On the firm’s classified income statement under the “Revenue” heading are both New Instrument Sales and Sales Commissions.
Do you agree with presentation of these in the Income Statement? Why or why not?
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