The following transactions were selected from among those completed by Cadence Retailers in...
Question:
The following transactions were selected from among those completed by Cadence Retailers in November and December:
| Nov. 20 | Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 3/10, n/30. |
| 25 | Sold two items of merchandise to Customer C, who charged the $700 sales price on her Visa credit card. Visa charges Cadence Retailers a 3 percent credit card fee. |
| 28 | Sold 10 identical items of merchandise to Customer D at an invoice price of $9,400 (total); terms 3/10, n/30. |
| 29 | Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. |
| Dec. 6 | Customer D paid the account balance in full. |
| 20 | Customer B paid in full for the invoice of November 20. |
Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31.
Net Sales:
The value of net sales is determined after deducting the sales return as well as sales discount from the value of gross sales. This value is used to calculate gross income by deducting the cost of goods sold.
Answer and Explanation: 1
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View this answer{eq}Sales \ return \ and \ allowance \ = \ \dfrac{Invoice \ price}{10} \\ Sales \ return \ and \ allowance \ = \ \dfrac{9,400}{10} \\ Sales \...
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Net Sales: Definition & Formula
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Chapter 1 / Lesson 9
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Understand what net sales in a business are, their importance, and their uses. Know the net sales formula and learn how to compute it throughout examples.
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