Final answer:
The question pertains to a company's bookkeeping practices where the revenue clearing account records both inflows (from cash and credit receipts) and outflows (to account for storefront and internet sales), which is a fundamental accounting process.
Step-by-step explanation:
In the scenario presented, the company's accounting practices involve recording sources of revenue and the associated receipts. The revenue clearing account being debited by cash and credit receipts reflects the inflows of money, likely from customer payments. Simultaneously, it is credited with the total of storefront and internet sales, representing the firm's revenue streams. This practice is an example of accounting entries that are part of an organization's bookkeeping process, tracking the flow of money into and out of the business.
Total revenue is a crucial figure for businesses as it signifies the income generated from all sales. For this specific company, total revenue would be calculated by multiplying the price of the products sold by the quantity. Since three-quarters of the company's revenue comes from internet orders, it suggests a significant online market presence.