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he adjusted trial balance of Ivanhoe Company shows these data pertaining to sales at the end of its fiscal year, October 31, 2017: Sales Revenue $904,700; Freight-Out $12,500; Sales Returns and Allowances $20,900; and Sales Discounts $14,700. Prepare the sales section of the income statement.

Respuesta :

hamnasajid96

Answer: Ivanhoe Company

Income statement

for the year ended October 31, 2017

Sales revenue $904,700

Less:sales discount ($14,700)

Less:sales return. ($20,900)

-------------------

Net sales $869100

Explaination:

Sales section of the income statement does not include fright out charges because it is an expense which is included in the expense section. i.e it would be subtracted from net sales to arrive at the net profit which is not the requirement of the question.

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