lorette sells $10,000 of product to kliethco, and also purchases $2,000 of cleaning services from kliethco…

lorette sells $10,000 of product to kliethco, and also purchases $2,000 of cleaning services from kliethco. the cleaning services have a fair value of $1,500. lorette should record revenue on its sale of product to kliethco of: multiple choice $8,500 $10,000 $8,000 $9,500

lorette sells $10,000 of product to kliethco, and also purchases $2,000 of cleaning services from kliethco. the cleaning services have a fair value of $1,500. lorette should record revenue on its sale of product to kliethco of: multiple choice $8,500 $10,000 $8,000 $9,500

Answer

Explanation:

Step1: Understand revenue recognition principle

Revenue is recognized when earned. Sale of product revenue is based on the amount of the product - sale transaction.

Step2: Identify product - sale amount

Lorette sells $10,000 of product to KliethCo. The purchase of cleaning services is a separate transaction and does not affect the revenue from the product sale.

Answer:

$10,000$