ABSTRACT
Gross profit equals revenue minus purchase price. When the ‘gross profit’ specialised equity account is split into two specialised equity accounts, ‘sales revenue’ and ‘cost of goods sold’, then not only gross profit can be calculated by deducting cost of goods sold from sales revenue, but also total sales revenue. This chapter explains how to calculate sales revenues. It provides examples to invoices and journal entries of the sales revenues. The chapter also includes multiple exercises that help students try themselves and prepare the journal entries for the special journals by using the sales revenues and 'cost of goods sold' ledger accounts.
