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Sales returns related to sales on account were $400. All returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. What amount will be reported on the income statement as net sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Respuesta :

Tundexi

Answer:

Net sales to be reported on the income statement is $18,098

Explanation

                  Computation of Net sales

Particulars                                                                Amount

Sales revenue                                                          $18,900

($8,400 + $10,500)

Less: Credit card discount (a contra revenue)       $252

($8,400 * 3%)

Sales Discount (a contra revenue)                           $50

($10,500 - $500) * 1/2 * 0.01

Sales returns and allowances (a contra revenue)   $500      

Net sales                                                                    $18,098

Note: Kindly find attach the complete question while $400 sales return is changed to $500.

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