Question

Kelly’s Jewelry has the following transactions during the year: total jewelry sales = $700,000; sales discounts = $17,500; sales returns = $45,000; sales allowances = $25,000. In addition, at the end of the year the company estimates the following transactions associated with jewelry sales in the current year will occur next year: sales discounts = $1,750; sales returns = $5,400; sales allowances = $3,330. Compute net sales.

Answer 1

Answer:

The Net sales is $602,020.

Explanation:

Net sales = Total sales - Sales discounts - Sales returns - Sales allowances

                = $700,000 - $19,250 - $50,400 - $28,330

                = $602,020

Therefore, The Net sales is $602,020.