Answer: The net sale is $12,034,300
Therefore the correct option is option D. Non of the above.
Explanation: Net sales is the value of sales when sales return and allowance, sales discount, and expenses due to sales, are subtracted from the gross sales. This is very important as it tells the quality of sales made.
Freight out is the expenses incurred in transportation, during delivering of goods.
NET SALES IS CALCULATED AS:
$12,720,000 - ($371,000 + $175,500 + $139,200) =
$12,720,000 - $685,700 = $12,034,300
Therefore the net sale is $12,7034,300