Burke Enterprises sells toy flying saucers. The following information relates to toy sales during the month of June (the first month of operations) and to related cash transactions with customers. Behrend pays a sales commission of 1% of all sales, with payment in the month following the month of sale.
Toy sales for cash $ 18,000
Toy sales on account (credit sales) $ 42,000
Collections from customers for the credit sales $ 3,000
Deposits received from customers for orders to be filled in July $ 2,000
In the income statement for its first month, Burke should report sales revenue of
A. $60,000
B. $62,000
C. $23,000
D. $21,000