Answer:
The net sales to be recorded is 504,980 dollars.
Explanation:
Based on accounting matching principle which directs a company to report an expense on its income statement in the period in which the related revenues are earned. SO all sales related expenses, commissions, discounts and taxed should be recorded in same period in which revenue is recognized. However, sales returns are recorded in the period in which
they actually occured.
So based on above explain we will compute net sales as follow.
Total sales = $ 560,000 = $560,000
Less: Sales discounts = $ 10,500 + $ 1,050 = ($ 11,550)
Less: Sales returns
* = $ 31,000 = ($ 31,000)
Less: Sales allowances = $ 11,000 + $ 1,470 = ($ 12,470)
Net sales = $ 504,980
Will be recorded in the year in which it occurs.
