Johnson sells $104,000 of product to Robbins, and also purchases $10,800 of advertising services from Robbins. The advertising services have a fair value of $8,400. Johnson should record revenue on its sale of product to Robbins of:

Respuesta :

Answer:

$104,000

Explanation:

The amount or value of sale of the product is what Johnson recognizes are revenue. The amount of revenue is only affected by sales discounts/rebate, sales return and allowances.

Hence the purchase of advertising services from Robbins is not an element of revenue but expense.

As such, Johnson should record revenue on its sale of product to Robbins of $104,000.